Needham also hiked its price target by $10
Software firm Datadog Inc (NASDAQ:DDOG) is trading 2.8% higher at $121.90, enjoying a lift after being maintained at a "buy" rating at Needham. The brokerage also hiked its price target on DDOG to $140 from $130. Should today's gains hold, the stock will snap a three-day losing streak and chip off some of its year-to-date deficit of 16%.
Datadog stock has struggled to maintain any significant gains in 2025, most recently facing off against its 120-day moving average and the $120 level. Shares remain almost 30% off their December multi-year peak.
Heading into today analysts are heavily bullish, with 31 of 39 in coverage sporting a "buy" or "strong buy" recommendation. Plus, the average 12-month price target of $138.61 comes in at a 14% premium to current levels.
Options look affordable, per Datadog stock's Schaeffer's Volatility Index (SVI) of 35%, which ranks in the 9th percentile of its annual range. This means options traders are pricing in low volatility expectations. DDOG has a tendency to outperform these expectations, per its Schaeffer's Volatility Scorecard (SVS) of 79 out of 100.