03:50 PM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our target to $139 from $149, on a forward P/S of 17x our next-12-month sales forecast of $2.73B, on lower market multiples, but above its one-year average on rising consumption activity and new product uptake. We raise our 2024 EPS forecast to $1.60 from $1.58, but trim 2025 to $1.89 from $1.93. DDOG posted Q1 revenue of $611M, above consensus by $19.3M, while non-GAAP EPS of $0.44 beat by $0.10. Revenue climbed 26.8% Y/Y, accelerating from the prior quarter as DDOG added large customers (annual recurring revenue [ARR] above $100K) at a solid cadence (customers rose to 3,340, up 14.8% Y/Y) and platform adoption continued to expand. We are encouraged by sequential usage growth this quarter as customers that were optimizing consumption before are now adding more products and increasing consumption - the step-up contribution to ARR was the highest it has been since Q4 2021. We believe this reflects recovering appetite for cloud migration projects and budget prioritization for observability solutions.