Rosenblatt Lowers Datadog Price Target to $185, Retains Buy Rating
Rosenblatt lowered its Datadog price target to $185 from $200 while reiterating a Buy rating, citing sector-wide valuation multiple compression and macro uncertainty impacting IT spending. The firm still projects in-line-to-beat Q4 performance, reflecting confidence in Datadog’s fundamentals and record Q3 bookings growth from major enterprise deals.
1. Rosenblatt Cuts Price Target and Maintains Buy Rating
Rosenblatt reduced its Datadog price target from $200 to $185 but upheld its Buy rating, pointing to comparable multiple compression across high-growth cloud stocks and ongoing macro uncertainty affecting enterprise IT budgets.
2. Confident Q4 Outlook Reflects Strong Fundamentals
Despite the target reduction, Rosenblatt expects Datadog to deliver in-line to incrementally better fourth-quarter results, underlining confidence in the company’s revenue growth, customer retention, and cross-sell momentum.
3. Robust Q3 Bookings and Major Enterprise Wins
In Q3 2025, Datadog more than doubled new logo annualized bookings year-over-year, fueled by multiple seven-figure contracts with a leading European telecom provider and a Fortune 500 technology hardware firm, showcasing strong demand for its observability platform.