Bernstein Raises PT on Datadog (DDOG) to $170, Citing Strong Cloud Consumption Trends

Core Viewpoint - Datadog, Inc. is gaining attention as an AI stock, with Bernstein raising its price target to $170 from $147 while maintaining an "Outperform" rating, indicating positive market sentiment and expected revenue growth in the second half of the year [1][2] Group 1: Price Target and Ratings - Bernstein has increased Datadog's price target to $170 from $147, reflecting confidence in the company's performance [1][2] - The firm maintains an "Outperform" rating on Datadog shares, suggesting a favorable outlook compared to the broader market [1][2] Group 2: Revenue Growth Expectations - There are signals indicating a potential acceleration in base revenue excluding AI for the second half of the year, following a mid-summer pullback [1][2] - Market sentiment has shifted positively, with reduced concerns about Datadog losing business to OpenAI in the near term [2] Group 3: Financial Metrics and Analysis - The analysis includes a 50/50 "rule of 40"-based multiples regression, adjusting the Price to Next Twelve Months (NTM) revenue multiple from approximately 14x to 15x [2] - A discounted cash flow (DCF) model with an 11% weighted average cost of capital (WACC) and 3% terminal growth was utilized to support the price target increase [2] Group 4: Company Overview - Datadog, Inc. offers a cloud-based SaaS platform focused on monitoring and analytics, with specializations in cloud computing and AI-powered cybersecurity products [2]