Mizuho raised its Datadog (DDOG, $103.51) price target to $116 from $110 after the company announced a new strategic partnership with Microsoft Azure. 

The firm explains that Datadog and other observability vendors already have a series of partnerships with public cloud vendors, but says the Azure pact is a tighter, more seamless agreement that has the ability to drive “significantly higher” new customer acquisition (and increased overall usage) for Datadog going forward.

Yesterday, Datadog shares surged 12% and hit a new all-time high of $107.99 on news of the new Microsoft partnership.