Truist Securities lowered the target on Datadog(DDOG:NSD) to $200 from $225

STA Research
by: STA Research

Truist Securities lowered the target on Datadog to $200 from $225, and maintained the Buy rating on the company’s stock price.

Based on the Datadog Inc stock forecasts from 18 analysts, the average analyst target price for Datadog Inc is USD 201.21 over the next 12 months. Datadog Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Datadog Inc is Slightly Bearish, which is based on 4 positive signals and 6 negative signals. At the last closing, Datadog Inc’s stock price was USD 146.44. Datadog Inc’s stock price has changed by +14.20% over the past week, -3.00% over the past month and +80.21% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors.

 

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