By Senad Karaahmetovic
Shares of Datadog (NASDAQ:DDOG) are up half a percent in premarket Wednesday trading after a Bernstein analyst started at Outperform, Top Pick.
The analyst said Datadog performed well “across all our evaluation lenses.” He believes the market is underappreciative of how well DDOG will do in the future.
The analyst set a $172 price target on DDOG stock, signaling an upside potential of nearly 100%.
“We are bullish on Datadog for its rapidly expanding TAM, a Product Led Growth ("PLG") commercial model and large secular tailwinds. As Datadog's customer base re-accelerated IT cloud migration and new application deployment projects that had been delayed during COVID, we expect its revenue to follow suit,” the analyst said in a client note.
Elsewhere, the analyst also started Atlassian (NASDAQ:TEAM) and ServiceNow (NYSE:NOW) at Outperform as well, with both seen as “value” stories in the growth sector.
“Long-term strong track records that we anticipate will continue, each with one performance aspect underappreciated by the street,” the analyst added.
Okta (NASDAQ:OKTA), Twilio (NYSE:TWLO), and Zoom Video Communications (NASDAQ:ZM) are started at Market Perform. The first two are “hamstrung by low operating margins,” while TWLO has “more exposure to macro risks,” hence Market Perform ratings assigned.