SerpApi.Org
- Datadog (DDOG) was in focus on Tuesday as Jefferies downgraded the enterprise software company to Hold from Buy.
- Shares fell 2% in premarket trading.
- “Downgrade to Hold, as our thesis on the company being an AI beneficiary and category leader has largely played out in 1H26, with shares up +94% YTD on strong execution and growth re-accelerating from 25% in 1Q25 to 32% in 1Q26,” analyst Brent Thill wrote in a note to clients. “At ~18x EV/CY27 revenue, DDOG trades at a 4-turn premium to SNOW, leaving little cushion for any execution slippage, and with the stock well above our prior price target, we would look to get constructive again at a better entry point.”
- Despite the downgrade, Thill raised his price target on Datadog to $280 from $210.
More on Datadog
- Datadog: Fantastic Execution, Stretched Valuation
- Why I'm No Longer Adding To Datadog Despite Record Growth And AI Wins (Downgrade)
- Datadog: Not The Type Of SaaS Business I'm Interested In
- Kimi K3's arrival could benefit cybersecurity and infrastructure names: Stifel
- SA analyst upgrades/downgrades: NKE, DDOG, BIDU, INTC
