Scotiabank raises DDOG price target citing strong beat-and-raise potential and enterprise AI adoption trends.
Scotiabank analyst Patrick Colville increased Datadog’s (NASDAQ:DDOG) price target to $275 from $225 while maintaining an Outperform rating. The adjustment reflects expectations of continued beat-and-raise performance in Q2 and 2026 despite high valuation concerns.
Truist’s Miller Jump also upgraded DDOG to Buy from Hold, raising its target to $300 from $190. Analysts highlighted enterprises prioritizing AI adoption over cost optimization, with customers in early stages of agentic AI integration. Stability in relationships with frontier labs was noted as a positive factor.
Datadog’s observability and security platform for cloud applications remains a key driver, with optimism extending to its non-AI-native customer base.