- Citing positive industry checks, Rosenblatt raises its Datadog (NASDAQ:DDOG) target from $76 to $115.
- Analyst Yun Kim says the checks shows increasing large deal activity but notes there wasn't much change in the overall IT spending environment.
- Datadog is driven by the secular trends of cloud migration and cloud-security initiatives, which should help the company outpace the industry, writes Kim.
- The firm does expect "the disparity between high spending priority initiatives and lower priority ones" to become larger in H2 and "well into next year."
- Datadog shares are up 2.1% to $90.78. The company has a Bullish average Wall St. Analysts rating.