Truist Securities initiated coverage with a "buy" rating and $120 price target
The shares of Datadog Inc (NASDAQ:DDOG) are up 1.9% at $100.94 at last check, after Truist Securities initiated coverage with a "buy" rating and $120 price target. The firm cited Datadog's leadership in the converging observability market, given its cloud-native architecture and impressive infrastructure monitoring tools. Though conceding that the valuation isn't too cheap at the moment, the analyst said the shares are still attractive on a growth-adjusted basis.
DDOG has had a volatile run on the charts lately. Since November, support at the 160-day moving average has managed to capture several pullbacks. The equity's recent rally attempt was capped off by the $108 level, however, and the shares have since seen four consecutive days of losses. Looking to stage a bounce today, Datadog stock is up over 141% year-over-year.
Truist Securities is joining a split brokerage bunch, with 10 analysts carrying a lukewarm "hold" rating coming into today, and the remaining eight a "buy" or better. Meanwhile, the 12-month consensus price target of $105.35 is a 3.7% premium to current levels.
Meanwhile, there's plenty of short interest to be unwound. The 15.35 million shares sold short account for 8.4% of the stock's available float, or four days of pent-up buying power at DDOG's average pace of trading.