Jefferies analyst Brent Thill raised his price target on shares of Datadog to $45 from $36 after the company's Q4 metrics suggested to him that its competitive positioning is intact, with net new ARR growth supported by new customers as well as expansions within the base. While he likes Datadog's fundamentals, he remains on the sidelines on valuation, although he said he would be more constructive on a meaningful pullback. Thill keeps a Hold rating on Datadog shares.

DA Davidson analyst Gil Luria elevated Datadog (DDOG) to the firm's 'Best-of-Breed Bison' list while maintaining a Neutral rating and $115 price target on the stock. The firm cites large enterprises like Coinbase (COIN) who adopted Datadog after its homegrown monitoring solution struggled to keep up with the tremendous increase in user traffic, which allowed its engineers to focus on building new functionality instead. The total addressable market of Observability is also large at about $60B with a low-teens growth CAGR and underpenetrated at less than 30% overall, the analyst tells investors in a research note. The firm adds however that at 16-times expected 2024 revenue, Datadog's "full" valuation reflects "one of the most expensive" software names today.

Wells Fargo upgraded Datadog to Overweight from Equal Weight with a price target of $150, up from $130.