RBC Capital Markets has revised its price target for Datadog (DDOG, Financial), lowering it from $170 to $119, while maintaining an Outperform rating on the stock. This adjustment is part of a comprehensive preview of the software sector's first-quarter results. The revision comes amid heightened uncertainty in software purchasing cycles, largely influenced by inconsistent tariff policies that have recently seen a temporary suspension.
The analyst highlights that while this pause in tariffs may provide short-term relief, it does little to alleviate the longer-term unpredictability impacting the software industry. This uncertainty has led RBC to adopt a more conservative approach in its estimates. Although RBC still identifies potential buying opportunities within the software sector, the firm remains cautious, acknowledging that comprehensive market stability is necessary to support a more confident outlook.
