Rosenblatt Reiterates Buy Rating on Datadog with $305 Price Target, Bullish on AI Growth Prospects

Deep News10-30 20:31

Ahead of Datadog's upcoming third-quarter earnings report on October 30, Rosenblatt reaffirmed its Buy rating and maintained a $305 price target.

The firm expects Datadog (NASDAQ: DDOG) to deliver approximately 29% year-over-year organic revenue growth in the third quarter, with full-year fiscal 2026 revenue growth of around 30%.

Enterprise application modernization and new AI workloads are anticipated to be the primary growth drivers.

Currently, Datadog (NASDAQ: DDOG) has more than 750 AI-native enterprise customers, covering the world's top ten leading AI companies.

Rosenblatt also noted that there remains significant room for expansion in product usage among Datadog (NASDAQ: DDOG)'s existing customers. In the second quarter, only 13% of customers used at least 10 Datadog products, and as enterprises gradually consolidate their cloud monitoring tools, more customers are expected to increase their product purchases.

Datadog (NASDAQ: DDOG) will release its third-quarter earnings report before U.S. market open on November 4.

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