Shares of Datadog, Inc. (NASDAQ:DDOG) gained 1.4% in early trading Thursday after it fetched yet another bullish analyst. Stifel analysts upgraded shares to Buy from Hold while lifting the price target to $140 from $98.
The upgrade follows the firm's fall Datadog customer survey. The survey revealed that 38% of respondents expressed interest in optimizing their spending, marking an improvement from the 50% recorded in the firm's previous surveys conducted approximately 6 and 12 months ago. "Clearly this is in line with current consumption commentary and bodes well for CY24 growth," analysts commented.
In the future, customers emphasize value-driven pricing and plan a 12% spend increase next year, surpassing high-single digit growth in CY23, expecting their Cloud assets to rebound strongly, analysts added.
"Overall, after a volatile 2023, given current consumption trends and a stable macro backdrop, we expect DDOG to post ~25% CY24 rev-growth, but expect guidance to start at ~20%," analysts concluded.