UBS Upgrades Datadog Outlook to Buy with 16.69% Upside

A recent report reveals that UBS has upgraded Datadog's outlook from Neutral to Buy, predicting a 16.69% upside. With a projected revenue growth of nearly 28% and a non-GAAP EPS of 1.68, investor sentiment appears increasingly bullish.

Date: 20-10-2024

AI Rating: 7

According to the report, UBS has upgraded Datadog's outlook from Neutral to Buy, indicating a significant shift in investor sentiment. The analyst price forecast suggests a potential upside of 16.69%, with a one-year average price target of $149.51 per share compared to the current price of $128.12.

Additionally, the report highlights a strong projected annual revenue of $3,063 million, which marks an impressive increase of 27.96% year-over-year. This indicates a robust growth trajectory for the company, likely to bolster investor confidence and potentially drive stock prices higher.

The anticipated non-GAAP EPS is projected at 1.68, which, while not directly compared to previous figures in the provided text, could be interpreted positively if it exceeds prior expectations.

Furthermore, the report notes a substantial institutional interest in Datadog, with 1,512 funds reporting positions, reflecting an increase of 0.73% from the last quarter. The total shares owned by institutions rose by 5.47% to 280,395,000 shares, indicating growing institutional confidence.

Another bullish indicator is the put/call ratio of 0.99, which suggests that investors are more optimistic than pessimistic about the stock's near-term performance.

Overall, the favorable upgrade from UBS, along with projected revenue growth and bullish sentiment from institutional investors, positions Datadog positively in the eyes of potential investors.

Stocks: DDOG