Goldman Sachs Raises Datadog Price Target, Maintains Sell Rating
Goldman Sachs raised its price target for Datadog (DDOG) from $121 to $139, while maintaining a Sell rating. The adjustment follows an analysis of the company's performance and valuation.
Key Numbers
Goldman Sachs raised its price target for Datadog, Inc. (NASDAQ: DDOG) from $121 to $139, while maintaining a Sell rating on the shares. The update was reported by TheFly on May 12, 2026.
Rating Details
| Item | Value |
|---|---|
| Previous Target | $121 |
| New Target | $139 |
| Rating | Sell |
| Target Change | +14.9% |
Analyst Rationale
The Goldman Sachs analyst believes Datadog's stock is trading at a premium valuation compared to peers in the cloud monitoring space. Despite raising the price target to reflect slightly improved expectations, the analyst maintains that the stock remains overvalued at current levels.
Context
This rating comes as Datadog competes with companies like New Relic and Splunk in the application and infrastructure monitoring market. The stock has experienced volatility over the past year but remains up about 20% year-to-date in 2026.
Other analysts have mixed views; some argue Datadog's strong revenue growth justifies its high valuation, while others warn of slowing cloud spending.
What to Make of It
A price target hike does not necessarily imply a positive rating; it reflects an adjustment in financial estimates. Investors are encouraged to compare this rating with other analyses and review the company's financial performance before making any decisions.
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