Datadog barks up the right tree as shares rise 5% following Canaccord upgrade
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Datadog (NASDAQ:DDOG) shares rose more than 5% Thursday as Canaccord Genuity analyst Kingsley Crane raised his rating on the networking security company due to factors such as new investments in its technology platform.
Crane upped his rating on Datadog (DDOG) to buy from hold, and said its platform "flywheel" is now at "full power" and contributing to the company's overall growth. Crane said that with Datadog (DDOG) shares down by almost 30% since early July, the company represents an attractive option in what he called a "beaten down" software sector.
Datadog (DDOG) specializes in cloud-based data-monitoring and analysis software that businesses use to protect and determine who has proper access to their networks. Crane said Datadog (DDOG) is benefitting from offering technologies that help companies reduce their cloud costs while maintaining necessary levels of security.
While Crane raised his rating on Datadog (DDOG), he also trimmed his price target on the company's stock to $110 a share from $120.
Wall Street analysts currently have a consensus buy rating on Datadog's (DDOG) stock, while the company's shares get a hold rating from Seeking Alpha authors.
Meanwhile, Seeking Alpha's quant system, which regularly outperforms the stock market, gives Datadog's (DDOG) stock a rating of hold.