# Datadog Price Target Raised to $320 at RBC Capital Despite Stock Dip

- URL: https://stocks.freetheai.org/news/datadog-price-target-raised-to-320-at-rbc-capital-despite-stock-dip-624cac
- Published: 2026-10-12T16:44:10Z
- Category: analyst_ratings; sentiment: mixed; impact: medium
- Symbols: [NASDAQ:DDOG](https://stocks.freetheai.org/symbols/NASDAQ-DDOG)
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RBC Capital raised its price target on Datadog, Inc. (NASDAQ:DDOG) to $320 from $280 while keeping an Outperform rating. The target increase follows an upward revision to third-quarter revenue growth expectations for the observability software provider, which were lifted to between 34% and 35% from 28.7%. Shares of Datadog traded lower at $288.70, down 1.57% on the day.

The revised growth outlook reflects a modest deceleration from the 36% expansion reported in the second quarter, when total revenue reached $1.12 billion. Company management previously guided third-quarter revenue to between $1.135 billion and $1.145 billion. Growth estimates account for observed declines in usage from OpenAI, while Datadog also noted in filings that its largest customer scaled back usage in the third quarter.

If customer usage patterns stabilize or improve, revenue performance in the third and fourth quarters could exceed current expectations. Investors will watch upcoming financial disclosures to evaluate whether Datadog reaches its quarterly sales target and how customer demand trends develop.

## Key points

- RBC Capital raised its price target on Datadog to $320 from $280 with an Outperform rating.
- Third-quarter revenue growth forecast was increased to 34%-35% from a previous estimate of 28.7%.
- Datadog guided third-quarter revenue to $1.135 billion-$1.145 billion following Q2 sales of $1.12 billion.
- Shares fell 1.57% to $288.70 despite the higher analyst price target.
- Reduced usage from OpenAI and Datadog's largest customer creates potential revenue growth risks.

## Questions and answers

### Why did RBC Capital raise its price target on Datadog?

RBC Capital raised its price target on Datadog to $320 from $280 due to higher revenue growth expectations for the third quarter, projecting growth between 34% and 35%.

### What is Datadog's third-quarter revenue guidance?

Datadog expects third-quarter revenue to fall between $1.135 billion and $1.145 billion, representing a slight slowdown from the 36% growth achieved in the second quarter.

### Why are there concerns about Datadog's revenue growth?

Datadog disclosed that its largest customer reduced usage in the third quarter. Additionally, lower observed usage from OpenAI led analysts to exercise caution in their growth models.