© Reuters. Datadog, Inc. (DDOG) set-up too aggressive – Wells fargo
Wells Fargo analysts downgraded shares of Datadog, Inc. (NASDAQ:) to Equal Weight from Overweight on Friday, lowering the price target to $95 from $120 per share.
The analysts told investors in a note that their firm believes Datadog’s setup heading into FY 2024 is too aggressive.
The firm’s thesis is based on four key tenets. The first is the fact they see cost optimization trends continuing to persist, likely lasting for a few more quarters into 2024.
Next, they believe “FY24 consensus revenue estimates do not align with management’s historical guidance trends.” However, offsetting the above points, Wells Fargo said their third tenet is the “belief that Datadog can gain share following Cisco’s acquisition of Splunk.”
“Finally, we believe Datadog’s new AI-based solutions could become significant, long-term growth drivers,” concluded the analysts.
Read the full article here
