Buy Datadog stock for a 35% return in 12 months: TD Cowen

August 18, 2023 10:17 AM PDT | By Invezz

Buy Datadog stock for a 35% return in 12 months: TD Cowen — Image source: Invezz

Datadog stock has upside to $120

On Friday, Sherman assumed coverage of the cloud company with an “outperform” rating. His $120 price objective suggests about a 35% upside from here.

The analyst likes Datadog stock as he sees the company as pivotal for a bunch of applications to run smoothly. His research note reads:

Datadog is a rare breed given its platform breadth, R&D engine, GTM approach, and management team.

The news arrives shortly after the Nasdaq-listed firm reported its financial results for the second quarter that topped Street estimates.

Sherman is bullish on the management team

Andrew Sherman is convinced that the enterprise software company has de-risked its guidance as well after lowering its full-year estimates for revenue last week.

Datadog now forecasts about $2.06 billion in revenue in its fiscal 2023 – up more than 20% versus last year. According to the TD Cowen analyst:

Our checks were highly bullish and, we think Datadog is in the best position to consolidate spend from other tools.

He’s super bullish also on the company’s management team. All in all, Sherman recommends owning Datadog stock as it’s now trading at a very attractive valuation. In contrast, famed investor Jim Cramer said last week that it had too high of a multiple to be in demand.

The post Buy Datadog stock for a 35% return in 12 months: TD Cowen appeared first on Invezz.

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