BUZZ-Citi says Palo Alto's Chronosphere deal to pile more pricing pressure on Datadog

Reuters11-24
BUZZ-Citi says Palo Alto's Chronosphere deal to pile more pricing pressure on <a href="https://laohu8.com/S/DDOG">Datadog</a>

** Citi expects Palo Alto Networks' PANW.O $3 bln acquisition of Chronosphere to intensify pricing pressure on cloud security firm Datadog DDOG.O

** Brokerage cuts PT on DDOG from $230 to $200, still indicating an upside of about 27% to the stock's last close

** Chronosphere's lower-cost model could gain an advantage when combined with PANW's extensive distribution network, brokerage says

** Citi warns this could slow the recovery of DDOG's non-AI customer base and risk the loss of a major client—likely OpenAI—which might switch away entirely

** Avg rating of 42 analysts is "buy," their median PT is $217 - data compiled by LSEG

** Up to last close, stock up 10.3% this year

(Reporting by Anhata Rooprai in Bengaluru)

((Anhata.Rooprai@thomsonreuters.com))

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