Weak observability checks push Datadog (DDOG) to neutral at BTIG

January 27, 2023 10:02 AM EST
Get Alerts DDOG Hot Sheet
Price: $65.24 -3.26%

Rating Summary:
    26 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 12
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

BTIG downgraded Datadog, Inc. (NASDAQ: DDOG) to a Neutral rating (From Buy) following some worsening field checks over the last few weeks. However, analyst, Gray Powell continues to view DDOG as a best in class player in the observability space.

During the field checks BTIG spoke to six contacts with a view on spending trends across the sector. All of them highlighted increasing headwinds in the space as customers look to optimize their cloud environments and rationalize expenditures with monitoring tools. As a result BTIG now forecasts 2024 revenue of $2,740MM, compared to the previous estimate of $2,842MM, and are 8% below the current Street forecast.

Powell wrote in a note, “We have a great deal of respect for the DDOG management team and the company’s ability to introduce and gain share with new products. However, with slowing growth at large scale cloud IaaS providers and increasing headwinds across the observability space, we see risk to Street estimates and potential for multiple contraction.”

Shares of DDOG are up 0.11% in early trading on Friday.

By Michael Elkins | [email protected]

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change, Downgrades, Hot List

Related Entities

BTIG, Michael Elkins