Datadog (DDOG) PT Lowered to $185 at Canaccord Genuity

Canaccord Genuity analyst Kingsley Crane lowered the price target on Datadog (NASDAQ: DDOG) to $185.00 (from $210.00) while maintaining a Buy rating.

The analyst commented: "By the numbers, DDOG accelerated revenues for the third quarter in a row, growing 29% yoy in the quarter and 28% for the year. Infra, APM, and Logs are now each > $1bn in ARR. 14 of the top 20 AI-native companies are DDOG customers, 19 AI-natives are spending $1M or more, and the firm signed an 8-figure land with a leading model provider in the quarter (which we believe to be Anthropic). FY26 growth guidance was set at ~19%. Last year, DDOG initiated FY25 revenue growth guidance at 18.7% before growing 27.7% at year's end. Two years ago, that delta between initial FY guidance and final FY results was ~5.5%. Our mental model for potential growth upside in FY26 is closer to two years ago (5.5%) than last year (9%) given some idiosyncratic strength afforded by OpenAI's spend growth with DDOG last year. Continued product leadership paired with a methodically prudent guidance philosophy suggests mid-20's+ growth is plausible this year. Bringing this to the stock, at a Rule of 55+ profile with a reasonable FCF-based valuation, we continue to view Datadog as a core software holding. We maintain our BUY rating and trim PT to $185 from $210, based on ~13x CY27E sales and ~46x CY27E FCF."

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