Datadog (DDOG) PT Raised at Bernstein; 'Strong H2 Cloud Consumption Trends'

Bernstein SocGen Group analyst Peter Weed raised the price target on Datadog (NASDAQ: DDOG) to $170.00 (from $147.00) while maintaining an Outperform rating.

The analyst commented: "Strong H2 cloud consumption trends; Over the last few weeks we watched Datadog (and broader cloud-linked consumption software) rally after a mid-summer pullback. In many ways we are not surprised, as multiple signals suggest H2 might actually see nice acceleration in base revenue ex-AI. Add to that market sentiment that the worst case OpenAI churn scenario seems unlikely in the near term (consistent with our earlier calls) and there are reasons to turn optimistic.

Based on our web metric analysis we increase our ex-AI component of growth for H2 and FY26-27 (AI component only tweaked slightly). Using a 50/50 “rule of 40”-based multiples regression (~15x Price to NTM revenue up from ~14x), and our DCF (11% WACC, 3% terminal growth) we raise our PT to $170 and maintain an Outperform rating."

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