Datadog, Inc. (NASDAQ:DDOG) was cut to Neutral from Outperform at Baird, lowering the price target on the stock to $84 from $100 per share in a note to clients on Monday.
Analysts said the firm is hitting the pause button on the stock as they have increasing concerns about 2024 growth.
"While still multiple long-term positives, our industry conversations suggest optimization headwinds are likely to continue into next year," the analysts said.
In addition, Baird believes consensus growth expectations for 2024 are too high, stating that there have been growing concerns, and they expect that to remain an overhang.
"Consensus calls for 22.3% revenue growth in 2024, a significant acceleration from consensus growth of 18.1% in 2H'23," the analysts added. "That's the highest implied growth acceleration across our coverage, which we believe warrants more caution near term."