KeyBanc Cuts Datadog Price Target to $155 Over 2026 Guidance Doubts
KeyBanc lowered Datadog’s price target from $170 to $155 while maintaining an Overweight rating, citing uncertainty around 2026 revenue guidance. The analyst noted Datadog may book up to $300 million from OpenAI but expects full-year growth in the mid-to-high teens versus a 21% consensus estimate.
1. Analyst Lowers Price Target and Maintains Overweight
KeyBanc analyst Eric Heath reduced Datadog’s price target from $170 to $155 while keeping an Overweight rating, reflecting confidence in the company’s positioning but caution on forthcoming guidance.
2. Guidance Uncertainty Clouds 2026 Outlook
The firm stressed the need for clarity on Datadog’s 2026 revenue guidance, anticipating management may project net new core-business revenue growth in the high-teens, below the 20–21% street consensus.
3. OpenAI Contribution as Key Variable
KeyBanc highlighted OpenAI as a critical revenue driver, estimating it could account for as much as $300 million and represent about 90% of Datadog’s AI-native customer segment.
4. Investor Sentiment and Competitive Risks
While feedback praises Datadog’s innovation and AI tailwinds, the analyst flagged potential price pressure from Palo Alto and data-platform rivals, as well as churn risk within the AI customer base.