- BTIG analyst Gray Powell initiated coverage of Datadog Inc (NASDAQ:DDOG) with a Buy rating and $175 price target (24.9% upside).
- Powell saw the observability market benefiting over the next few years as companies increasingly invest in digital transformation initiatives.
- Powell saw Datadog "winning across multiple product categories."
- Powell's checks indicate Datadog as the most innovative company in this space with real expansion potential in new markets, most notably, security.
- The cloud-native company reported fourth-quarter FY21 revenue of $326.2 million, up 84% year-on-year beating the consensus of $291.5 million.
- Datadog saw Q1 FY22 revenue of $334 million - $339 million, above the consensus of $306.6 million. Datadog saw FY22 revenue of $1.51 billion - $1.53 billion above the consensus of $1.41 billion.
- Price Action: DDOG shares traded higher by 0.61% at $140.99 on the last check Tuesday.
