Scotiabank Sees Datadog (DDOG) as Safe AI Monitoring Play Despite PT Cut

Datadog, Inc. (NASDAQ:DDOG) is one of the AI Stocks in Focus on Wall Street. On January 27, Scotiabank analyst Pat Colville lowered the price target on the stock to $180.00 from $217.00 while maintaining a Sector Outperform rating. The firm views DDOG as a safe AI monitoring play amid sector uncertainty.

The firm has revised its estimates based on a detailed assessment of its exposure to OpenAI and recent customer/partner checks. It estimates that OpenAI contributes an estimated $310 million in revenue run rate to Datadog, based on what it describes as a “bottoms up analysis” of the company’s customer exposure.

Scotiabank estimates DDOG’s revenue growth to approach the low-20% range in 2026, even though initial management guidance is likely to be more conservative.

“We believe that Datadog can grow its top line by ~23% in 2026, though we think management will issue guidance in the 17–18% range.”

The firm also pushed back against concerns about competition from Palo Alto Networks and Snowflake, saying recent checks show DDOG remains the standard for monitoring the most complex environments with no sign of pricing pressure.

It sees Datadog as a “port in the storm” amid broader AI disruption in the software sector.

Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.

While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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