What happened
Shares of Datadog, Inc. (DDOG -0.02%), an analytics platform company, spiked today after the company received an upgrade from an analyst at Jefferies.
The tech stock was up by as much as 7.8% today and had gained 6.5% as of 1:25 p.m. EST.
So what
Jefferies analyst Brent Thill upgraded Datadog from a hold rating to a buy rating today and raised his price target on the stock from $105 to $125.
Image source: Getty Images.
Thill believes the software sector, which Datadog is in, will continue to outperform other sectors and that some companies will continue to experience more gains this year.
Technology stocks rallied in 2020, driven mainly by the demand for products and services that could help people adapt to social distancing and lockdowns.
With Thill's upgrade today, it appears the analyst believes the growth period for these types of tech stocks isn't quite over yet.
Now what
With today's share price bump, Datadog's stock is up 164% over the past 12 months. The company could experience more share price growth as Datadog nears the end of an impressive year. Datadog's management estimates that sales will climb 43% in the fourth quarter (which will be reported sometime next month) and full-year sales will spike 62%, both at the midpoint of guidance. All of which means that Thill's bullish perspective on the stock might prove accurate.
