Truist Ups Datadog to Buy, Lifts Price Target to $300
DDOG•Truist Securities upgraded Datadog to Buy from Hold, raising its price target to $300 from $190 based on durable AI-driven growth and improved stability in relationships with major customers like OpenAI. The firm forecasts 25% revenue growth for fiscal 2027, well above the 20.5% consensus estimate among analysts.
1. Truist Upgrade and Price Target Increase
Truist upgraded Datadog to Buy from Hold and raised its price target to $300 from $190, citing durable AI-driven growth and easing concerns around relationships with its largest customers.
2. Key Takeaways from Fieldwork and DASH Conference
Analyst fieldwork at Datadog’s DASH user conference highlighted enterprises prioritizing AI adoption over cost optimization and noted improved stability with frontier lab customers.
3. OpenAI Relationship and Future Spend Outlook
OpenAI now relies on Datadog’s live traffic metrics as its source of truth, and Truist expects OpenAI’s Datadog spending to decline by half between fiscal 2025 and 2027, offset by ramping Anthropic usage.
4. Broader Growth Outlook and FY27 Estimates
Truist models 25% revenue growth in fiscal 2027—above the 20.5% consensus—driven by accelerated non-AI-native customer adoption, vendor consolidation, accelerated migrations via coding agents, and a second leg of growth from agentic AI workflows.
