Datadog, Inc. (NASDAQ:DDOG) is one of the Top 10 AI Stocks in the Spotlight. On July 3, TD Cowen analyst Andrew Sherman reiterated a “Buy” rating on the stock with a $150.00 price target.
The rating affirmation follows Datadog’s inclusion in the S&P 500. The cloud monitoring company will be replacing Juniper Networks, which has been acquired by Hewlett Packard Enterprise (NYSE:HPE).
The firm anticipates strong demand for Datadog’s shares, considering its market capitalization of more than $50 billion. The firm believes that the S&P 500 inclusion is expected to bring “a broader audience of large cap & generalist investors to the name.”
A high-rise city building with a computer-generated chart reflecting the stock market index on its glass façade.
“Index inclusion is a powerful force given the trillions of assets indexed to the S&P 500. We have seen this benefit many of the other software stocks in recent years as many large-cap managers have to take a look and make a decision for the first time, and we expect this to happen here as well.”
-TD Cowen analyst Andrew Sherman said in a note to clients.
Datadog was part of a “select group of large-cap, high-growth, high-margin (and profitable on a GAAP basis) software companies.”
Datadog, Inc. offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
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