11:40 AM EDT, 05/07/2025 (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 maintain our Hold recommendation for shares of DDOG, but raise our target price to $119 from $99, based on an EV/S multiple of 13.3x our 2025 sales projection of $3.23 billion, slightly below its three-year historical average of 13.5x, but in line with its software peer group mean. The valuation reflects DDOG's revenue growth deceleration (albeit stronger near-term demand trends), higher performance risks and weaker margin outlook, partially offset by its competitive positioning and large market opportunity. We note solid Q1 sales, driven by continued platform adoption and higher contribution from AI-native customers, and strong bookings activity from large enterprise customers. However, we think economic-related risks are elevated, and could impact demand in 2H 2025. The company also lowered its operating income guide, citing lower gross profit from increased cloud costs and growth investments. We keep our 2025 EPS projection at $1.70 and lower our 2026 EPS estimate to $2.05 from $2.10.