Datadog NASDAQ:DDOG, which sells cloud observability and monitoring software, rose 0.85% premarket after Citi raised its price target to $300 from $270 and kept a Buy rating, citing demand signals and AI-related growth. The firm called 34% revenue growth achievable with a high-water estimate around 36%, driven by both AI-native and traditional customers. "We see runway for stock to grind higher," Citi wrote, while noting multiples are at new peaks after a run of more than 80% this year.
"There are more aggressive calls out there. UBS sits at $315, JMP Securities at $311, and TD Cowen and Guggenheim also at $300. Jefferies moved the other way this month, cutting to Hold from Buy on valuation while still lifting its target to $280 from $210.
Datadog reports second-quarter results before the open on August 6.