- Goldman Sachs analyst Kash Rangan raised the rating on Datadog Inc (NASDAQ:DDOG) to Conviction Buy from Buy and put a $250 price target on shares, implying some 56% upside.
- Rangan noted that the company is "well-positioned" for success outside of its core products, notably in security, which could boost its total addressable market by $20 billion.
- In addition, Rangan cited the company's revenue model "has room to grow," as Datadog only accounts for 10% of its largest clients' cloud spend.
- In addition, Rangan noted that Datadog's product suite is cloud-agnostic and is well integrated into a platform on a common architecture.
- Price Action: DDOG shares traded higher by 0.49% at $159.80 in the market on the last check Tuesday.
