Jefferies analysts attended Dash 2024, Datadog’s (DDOG) user conference event held in New York City, noting they were “left impressed” with the rate of the company’s portfolio expansion.
“Overall feedback from our conversations with customers and partners on the showroom floor came back positive,” analysts said in a note.
Many customers appreciated the user-friendliness of the platform and the high level of support provided by the Datadog (NASDAQ:DDOG) team. While most customers used DDOG primarily for metrics, several mentioned they still relied on other vendors for logging services, analysts noted.
“Our conversations also suggested that logs is typically where more of the overspending occurs among customers given the inherent usage volatility and unpredictability of those workloads,” they continued.
Although the stock’s valuation at 13x 2025 revenue stands as the biggest concern, Jefferies said it remains a fan of DDOG’s fundamentals. The investment bank reiterated a Buy rating and the price target of $155 on the stock.
Separately, Mizuho analysts also described the product updates and the pace of innovation as impressive, however, they continue to believe that DDOG’s competition has slightly intensified over the long term and hear more customer complaints related to pricing.
“Net, we believe the risk/reward is somewhat balanced and maintain our Neutral rating while tweaking our PT to $135 (was $130),” they wrote.
