Truist Securities Upgrades Datadog, Inc. to 'Buy'
Truist Securities raised its rating on Datadog, Inc. to 'buy' with a $300 price target, a 29.83% upside from the current price.
Key Points
- Truist Securities upgraded Datadog, Inc. (DDOG) to 'buy' with a new price target of $300 on June 15, 2026.
- Truist Securities's $300 price target implies 29.83% upside from Datadog, Inc.'s ($DDOG) current $231.07 share price.
- Shares of Datadog, Inc. are trading at $229.9, with a market cap of $81.8 billion and a forward P/E of 80.7.
- Several insiders, including the CEO and CFO, sold shares recently, with transactions occurring on June 8, 2026.
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Truist Securities has upgraded its rating on Datadog, Inc. (NasdaqGS:DDOG) to 'buy' with a new price target of $300. The upgrade, announced on June 15, 2026, reflects growing confidence in the company's performance and growth prospects.
Datadog, Inc. Stock Down 2.5%
Shares of Datadog, Inc. traded near $229.9. The company boasts a market cap of approximately $81.8 billion. Datadog's current price-to-earnings ratio is a lofty 589.5, but its forward P/E ratio is a more moderate 80.7, indicating expectations of strong earnings growth. The stock has seen a 52-week range from a low of $98.01 to a high of $278.71, with a 50-day moving average of $177.18 and a 200-day moving average of $149.59. The company's current ratio stands at 3.4, and it has a debt-to-equity ratio of 32.2, suggesting a solid financial footing.
$DDOG price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
In its latest earnings report, Datadog, Inc. saw revenue of $3.67 billion, reflecting a healthy growth rate of 32.2%. The company achieved a net margin of 3.7% and a return on equity of 3.9%. Datadog is expected to announce its next earnings results on 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.
Recent insider transactions at Datadog include sales by several key executives. Chief People Officer David Galloreese sold 4,013 shares on June 9, 2026, at an average price of $228.9, under a planned sale. On June 8, 2026, Chief Technology Officer Alexis Le-Quoc and CEO Olivier Pomel sold 57,000 and 73,833 shares, respectively, although Pomel also made a small purchase of 73,833 shares at $5.67. Chief Financial Officer David Obstler sold 75,000 shares at $231.69, also as part of a planned transaction.
Analysts Set New Price Targets
On June 15, 2026, Truist Securities upgraded Datadog, Inc. to a 'buy' rating with a price target of $300. Earlier, on June 11, 2026, TD Cowen, Macquarie, Cantor Fitzgerald, and Benchmark maintained their 'buy' ratings, with price targets ranging from $226 to $260. This consensus reflects strong positive sentiment among analysts, with 46 opinions resulting in a 'strong buy' recommendation and a mean target price of $233.06.
About Datadog, Inc.
Datadog, Inc. operates a comprehensive observability and security platform for cloud applications worldwide. The company, headquartered in New York, was founded in 2010 and is led by CEO Olivier Pomel. It offers a wide range of products, including infrastructure monitoring, log management, and security services. Datadog employs approximately 8,100 people and continues to expand its presence in the technology sector.
Bottom Line
Truist Securities' upgrade to 'buy' for Datadog, Inc. underscores confidence in the company's growth trajectory. Investors watch these ratings closely as they provide insights into market sentiment and potential future performance. It's important to note that these analyst ratings are based on past performance and expectations, and may not reflect the current market situation.
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