Why Analysts Are Closely Watching Datadog, Inc. (DDOG)

Datadog, Inc. (NASDAQ:DDOG) is among the most promising growth stocks according to analysts. On January 12, Eric Heath from KeyBanc maintained an ‘Overweight’ rating on Datadog, Inc. (NASDAQ:DDOG), while reducing the price target to $170 from $230, which suggests an upside potential of 34%. According to TheFly, the firm attributed its stance to modestly lower peer multiples, increased caution on security budgets, and growing competitive risks.

On the same day, Morgan Stanley upgraded Datadog, Inc. (NASDAQ:DDOG) to Overweight from Equal Weight and kept the price target at $180. The firm notes that, entering 2026, the company’s underlying growth trends are showing improvement. The company’s cloud migrations and digital transformation projects, along with an opportunity to monitor agentic apps, are powering its growth through 2027, the analyst tells investors in a research note.

Additionally, Morgan Stanley highlighted the company’s new product offerings, particularly cloud security, database monitoring, and incident management, which it believes are returning meaningfully to overall growth. The firm sees a CAGR of 23% for Datadog, Inc. (NASDAQ:DDOG)’s core revenue excluding OpenAI and free cash flow CAGR of 25% from 2025 through 2028.

Datadog, Inc. (NASDAQ:DDOG) is a New York-based company operating an observability and security platform for cloud applications. Incorporated in 2010, the company is committed to providing “observability, analytics, and insight into companies’ infrastructure environment.”

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Disclosure: None.