Datadog (DDOG) PT Lowered to $162 at BTIG

BTIG analyst Gray Powell lowered the price target on Datadog (NASDAQ: DDOG) to $162.00 (from $171.00) while maintaining a Buy rating.

The analyst comments "DDOG posted strong Q4 results, with revenue right on top of the upside scenario we outlined in our preview on 1/29, but guided 2025 revenue slightly below Street estimates. Specifically, Q4 revenue came in at $737.7MM / +25.1% y/y vs. our estimate of $712.3MM / 20.8% (Street $714.5MM) and our $739MM upside scenario. However, the initial revenue guide at +19% y/y was likely below most buy side expectations at +20% y/y and a guide down on operating income was surprising. Admittedly, there were some moving parts on the print. That said, we think concerns on AI Native customers repricing are overblown. Net new revenue and underlying metrics remained consistent in Q4 with recent trend lines. And guidance for 2025 will likely prove conservative. Our fieldwork leads us to believe that spending in the observability space will be better in 2025 than it was in 2024. We see opportunities for DDOG to win incremental share in log monitoring and potentially cloud SIEM. And AI workloads moving into production should be an upside catalyst for the company in 2H’25. We reduced our 2025 revenue estimate to $3,195MM / +19.0% y/y from $3,232MM / +21.6% previously to align with guidance. But we like the set up on estimates from here. Reiterate Buy."

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