By Sam Boughedda
Investing.com — Datadog Inc (NASDAQ:DDOG), the SaaS-based monitoring and analytics platform company, saw its shares slide Wednesday despite an upgrade from Rosenblatt analyst Blair Abernethy.
The analyst, who has a $175 price target on the stock, upgraded Datadog to Buy from Neutral, telling investors in a note that he expects the company to report another strong performance when it reports its earnings next week.
“Given recent end-market indications of continued heavy investment in enterprise Digital Transformation projects, solid demand for next generation monitoring software for cloud workloads, and strong cloud service provider growth, we again see the potential for incremental upside to our estimates,” explained Abernethy.
Datadog shares are down over 3.3% Wednesday to around $143/share, and down nearly 29% from all-time highs from last November.
Last week, Citi analyst Fatima Boolani assumed coverage of the stock with a Buy rating; Boolani said attractive "big picture" trends, product scaling efforts, and sales yield can continue surprising to the upside.