Scotiabank Reiterates Buy Rating on Datadog, Inc.
Scotiabank maintained its buy rating on Datadog with a $275 price target, a 22.79% upside from the current price.
Key Points
- Scotiabank reiterated its buy rating on Datadog, Inc. (DDOG) with a $275 price target as of June 18, 2026.
- Scotiabank's $275 price target implies 22.79% upside from Datadog, Inc.'s ($DDOG) current $223.96 share price.
- Datadog's stock is trading at $221.56 on NasdaqGS, with a market cap of approximately $80.67 billion.
- Institutional investors like BlackRock and Vanguard have shown strong interest in Datadog, with significant shareholdings.
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Scotiabank has reiterated its buy rating on Datadog, Inc. (NasdaqGS: DDOG), maintaining a price target of $275. This update came on June 18, 2026, as analyst Patrick Colville expressed continued confidence in the company's prospects.
Datadog, Inc. Stock Down 5.5%
Shares of Datadog are currently trading at $221.56 on the NasdaqGS. The company boasts a market capitalization of around $80.67 billion. Datadog's P/E ratio stands at a high 581.10, while its forward P/E is a more moderate 79.33, reflecting growth expectations. The stock's 52-week range spans from $98.01 to $278.71, with a 50-day moving average of $183.93 and a 200-day moving average of $151.00. The company has a beta of 1.553, indicating a higher volatility compared to the market.
$DDOG price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Datadog reported revenue of approximately $3.67 billion, with a growth rate of 32.2%. The company's earnings per share (EPS) is $0.39, and it maintains a net margin of 3.7%. Return on equity (ROE) is modest at 3.93%. Investors can look forward to the next earnings report scheduled for August 6, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
15 target raises vs 2 cuts.
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EPS & revenue
EPS beat estimates by 15.9%. Revenue beat estimates by 2.6%.
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Profit surprise
EBITDA missed by 66 percent. Operating income missed by 71 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
15 target raises, 2 target cuts.
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Earnings quality
Operating margin up 2.4 points. Positive free cash flow.
Earnings Call Summary
Datadog had an outstanding quarter with revenue of $1.006 billion, up 32 percent year over year and beating expectations. The company landed major deals with two of the world's largest artificial intelligence research teams and saw strong growth in non-artificial-intelligence customers as well, with net revenue retention around 120 percent. Management highlighted strong adoption of their artificial intelligence products like GPU monitoring and their security agents, which are helping customers monitor complex workloads faster and more efficiently.
Guidance Datadog raised full year revenue guidance to $4.3 billion to $4.34 billion, up from prior expectations. For next quarter they expect $1.07 billion to $1.08 billion in revenue. They are investing heavily in artificial intelligence products and expect continued strong growth driven by cloud migration and new AI training workloads at hyperscaler companies.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Insider Buying and Selling at Datadog, Inc.
On June 15, 2026, several insiders made transactions involving Datadog shares. Kerry Acocella, General Counsel and Secretary, sold 5,371 shares at an average price of $233.91 under a Rule 10b5-1 plan. Conversely, insiders Julie Richardson, Dominic Phillips, Dev Ittycheria, Shardul Shah, and Ami Prafullchandra Vora each acquired 1,072 shares, although the transaction price was not specified.
Analysts Set New Price Targets
On June 18, 2026, Scotiabank maintained its buy rating with a $275 price target for Datadog. This follows Citigroup's similar action on June 17, 2026, with a $270 target. Truist Securities upgraded Datadog to a buy on June 15, 2026, setting a higher target of $300. The consensus among analysts remains strong, with a recommendation key of 'strong buy' and a mean target price of $239.16 based on 46 opinions.
About Datadog, Inc.
Datadog, Inc. is a technology company based in New York, NY, specializing in observability and security platforms for cloud applications. Founded in 2010, it offers a range of products including infrastructure monitoring, application performance, and security management tools. Under the leadership of CEO Olivier Pomel, Datadog employs around 8,100 people and serves clients globally.
Bottom Line
Scotiabank's reaffirmation of its buy rating for Datadog, Inc. highlights continued optimism about the company's performance and future growth. With its strong market presence and innovative offerings, Datadog remains a focal point for analysts and investors alike. Remember, analyst ratings are based on projections and may not reflect current market conditions.
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