Datadog Receives New Buy Recommendation from UBS Analyst Karl Keirstead with $165 Price Target.

Datadog (DDOG) has received a Buy recommendation from Karl Keirstead at UBS, with a price target of $165. Keirstead has an average return of 15.2% and a 64.89% success rate on recommended stocks. The company has a market cap of $46.83B and a P/E ratio of 293.76. Corporate insider sentiment is negative, with 141 insiders selling shares in the past quarter.

Datadog (DDOG), a cloud-native company specializing in machine data analysis, has seen a surge in analyst optimism following recent earnings reports and strategic initiatives. On July 2, 2025, UBS analyst Karl Keirstead maintained a "Buy" rating and raised the price target for Datadog to $165. This move underscores the growing confidence in Datadog's future performance and market potential.

Keirstead, known for his average return of 15.2% and a 64.89% success rate on recommended stocks, cited Datadog's strong financial health and robust revenue growth as key drivers behind the price target increase. The company's gross profit margins of 80% and revenue growth of 26% over the last twelve months have been particularly impressive, according to Investing.com [2].

The stock has seen a notable rally, with a 54% increase since early April. However, it has pulled back slightly in the past week, trading at 12 times calendar year 2026 estimated revenues and 42 times estimated free cash flow. Despite this, analysts remain bullish, with the average target price for Datadog being $149.71, according to GuruFocus [1].

Moreover, several analysts have raised their price targets in the past few months. Jefferies analyst Brent Thill raised the price target to $160, while Cantor Fitzgerald and TD Cowen also increased their targets to $171 and $170, respectively [3]. This collective optimism reflects the analysts' belief in Datadog's ability to capitalize on the growing demand for cloud infrastructure monitoring and analytics services.

However, the corporate insider sentiment remains negative, with 141 insiders selling shares in the past quarter. This could indicate that insiders believe the stock is overvalued or that they are taking advantage of recent price appreciation. Nevertheless, the market sentiment is overwhelmingly positive, with the average brokerage recommendation being "Outperform," according to Investing.com [2].

In conclusion, Datadog's recent performance and strategic initiatives have garnered significant attention from analysts, who have raised their price targets and maintained a positive outlook on the stock. While corporate insider sentiment is negative, the overall market sentiment remains bullish, indicating that Datadog is well-positioned to benefit from the growing demand for cloud infrastructure monitoring and analytics services.

References:
[1] https://www.gurufocus.com/news/3033275/ddog-analyst-jefferies-raises-price-target-to-160-ddog-stock-news
[2] https://www.investing.com/news/analyst-ratings/datadog-stock-rating-reaffirmed-at-buy-by-ubs-ahead-of-q2-earnings-93CH-4168147
[3] https://www.benzinga.com/insights/analyst-ratings/25/08/46843201/22-analysts-have-this-to-say-about-datadog