12 Best Cybersecurity Stocks to Buy Now

Page 2 of 11

10. Datadog, Inc. (NASDAQ:DDOG)

Upside Potential: 8.75%

Number of Hedge Fund Holders: 84

Datadog, Inc. (NASDAQ:DDOG) is one of 12 best cybersecurity stocks to buy now. Bank of America analyst Koji Ikeda has raised the firm’s price target on Datadog, Inc. (NASDAQ:DDOG) to $150 from $138 while maintaining a Buy rating on the shares. The upgrade reflects growing confidence in Datadog’s long-term growth prospects, following encouraging insights from the company’s recent customer event and survey data.

Ikeda cited strong feedback from Datadog’s annual DASH conference, where enterprise adoption trends and product momentum were evident. The analyst noted that sentiment among customers remains positive, pointing to continued investment in observability and cloud infrastructure monitoring tools. These insights align with results from Bank of America’s proprietary Datadog survey, which highlighted a stable demand environment and increasing customer reliance on the platform’s expanded capabilities.

According to Ikeda, Datadog remains one of the most well-positioned vendors in the observability space, supported by durable top-line growth and strong free cash flow performance. He believes the company is on track to sustain more than 20% annual revenue growth and 20%-plus free cash flow margins over the long term, underpinned by its broad product portfolio and expanding enterprise footprint. With the increased price target, Bank of America reinforces Datadog, Inc. (NASDAQ:DDOG) as a “top pick” for the second half of 2025. The firm views Datadog’s continued innovation and customer traction as key drivers of upside in a competitive software landscape.

Page 2 of 11