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RBC Cuts Datadog Price Target to $150, Keeps Outperform Ahead of Earnings and Analyst Day

The firm cites peer‑multiple pressure as it flags the potential for strong Q4 results paired with cautious guidance.

A logo for Datadog is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. REUTERS/Benoit Tessier

Overview

  • On Feb. 9, RBC’s Matthew Hedberg reduced Datadog’s price target to $150 from $175 and reiterated an Outperform rating.
  • RBC anticipates robust Q4 performance but expects conservative revenue and margin guidance that could weigh on the shares.
  • The Feb. 12 analyst day is expected to spotlight Datadog’s AI and agentic strategy, security offerings, go‑to‑market approach, and margins, with no long‑term financial targets anticipated.
  • Market commentary remains divided, with Jim Cramer labeling the stock too expensive even after a steep decline, noting it still trades at under 50 times earnings.
  • Cantor Fitzgerald also cut its target to $150 on Feb. 6, even as the broader analyst consensus on the stock remains a Strong Buy.