Datadog stock is undervalued, this investor says

Black Swan Dexteritas president and portfolio manager Kim Bolton says Datadog (Datadog Stock Quote, Chart, News, Analysts, Financials NASDAQ:DDOG) remains a key cloud infrastructure holding, helped by its observability platform and growing security business.

Speaking on BNN Bloomberg’s Market Call on July 6, Bolton argued that Datadog helps companies manage cloud environments as data and related applications become more complex.

“If you’re in the cloud, with all the data and all of these other enablers going on, Datadog is sort of like the lifeguard,” Bolton said.

He noted that the company provides cloud-scale observability, helping ensure systems run efficiently and work together properly.

Bolton said Datadog has also diversified beyond observability through its security platform, which now has an annual revenue run-rate of about US$1-billion.

The fund manager noted the stock was trading around US$260.00 and he has a 12-month price target of US$295.00

The stock was up 66.8% over the previous 12 months and 133.7% over five years. Of the analysts covering the stock, 47 rated it “Buy,” two rated it “Hold” and one rated it “Sell,” with a consensus target of US$248.35.

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