Needham analysts had meetings with the management teams of 12 companies to discuss their performance until the end of December, before companies entered the “quiet period.”
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The Ratings
Analyst Mike Cikos maintained the following ratings and price targets:
- Backblaze Inc (NASDAQ:BLZE): Buy, $8
- Check Point Software Technologies Ltd (NASDAQ:CHKP): Hold, NA
- Cellebrite DI Ltd (NASDAQ:CLBT): Buy, $24
- Datadog Inc (NASDAQ:DDOG): Buy, $220
- DigitalOcean Holdings Inc (NYSE:DOCN): Hold, NA
- Dynatrace Inc (NYSE:DT): Hold, NA
- JFrog Ltd (NASDAQ:FROG): Buy, $70
- Fortinet Inc (NASDAQ:FTNT): Hold, NA
- N-Able Inc (NYSE:NABL): Buy, $10
- ServiceNow Inc (NYSE:NOW): Buy, $1,200
- Tenable Holdings Inc (NASDAQ:TENB): Buy, $38
- Varonis Systems Inc (NASDAQ:VRNS): Buy, $58
Check out other analyst stock ratings.
The Key Takeaways
The Needham analyst mentioned the following takeaways:
- Backblaze is undertaking some initiatives in phase 2 of its Go-to-Market transformation, although the benefits from this may take some time.
- Cellebrite continues to execute well, and management expects growth to reaccelerate growth in 2026.
- Check Point has already captured most of its previously announced 7%-10% price increase, while price-discipline has improved as sales compensation is now linked to ARR.
- Datadog is ramping several sales and marketing initiatives to support the medium- to long-term growth targets.
- DigitalOcean expects to bring 30MW of data center capacity online during the first half of 2026.
- Dynatrace seems confident about net new ARR reaccelerating in fiscal 2027.
- JFrog’s execution was strong in the third quarter of 2025, and the company seems “well-positioned to continue driving cross-sell with existing customers, while providing prudent guidance which excludes over-consumption,” Cikos wrote.
- Fortinet is focusing on re-accelerating service revenue growth in the second half of 2026, following strong product revenue and expansion billings so far this year.
- N-able aims to convert its remaining existing customers to annual contracts. The analyst expects roughly 65%-70% of customers to be on annual commitments exiting 2026.
- ServiceNow continues to see traction for Now Assist, while cRPO headwinds from short-term bridge contracts with U.S. federal agencies are likely to ease as the spending environment normalizes.
- Tenable is shifting toward installment billing, which could exert pressure in the near term but offer customers greater flexibility and result in margin expansion.
- Varonis expects around $60 million of “our estimated $175 million in OPS ARR to renew in 4QCY25, which should provide management a dramatically improved view of customer behavior into CY26,” the analyst further stated.
Price Actions: At the time of publication on Thursday, the following shares had risen:
- Backblaze by 4.88% to $4.67
- Cellebrite by 1.36% to $18.63
- Datadog by 1.80% to $139.17
- DigitalOcean by 3.24% to $45.28
- Dynatrace by 1.16% to $44.70
- JFrog by 3.99% to $66.54
- N-Able by 0.86% to $7.64
- Tenable by 1.16% to $25.08
- Varonis Systems by 0.85% to $32.94
The following had declined:
- Check Point Software Technologies by 0.33% to $186.73
- Fortinet by 0.14% to $79.27
- ServiceNow by 2.19% to $153.07
Read More:
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