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Morgan Stanley upgrades Datadog, says software stock can rally more than 30%

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Celebration at the Nasdaq during the Datadog IPO, September 19, 2019.
Source: Nasdaq

Investors should take advantage of the recent pullback in growth names to buy Datadog while it's still cheap, according to Morgan Stanley.

Software and tech stocks have struggled in recent months, and Datadog's stock price has dropped sharply since peaking in early February. Morgan Stanley analyst Sanjit Singh upgraded the stock to overweight from equal weight, saying in a note to clients on Friday that the company should rebound and set a new record high.

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