Oppenheimer Increases DigitalOcean (NYSE:DOCN) Price Target to $85.00

DigitalOcean (NYSE:DOCN) had its price target hoisted by analysts at Oppenheimer from $60.00 to $85.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Oppenheimer’s price target would suggest a potential upside of 56.08% from the company’s current price.

Other equities analysts have also issued research reports about the company. Stifel Nicolaus set a $57.00 price target on DigitalOcean in a research note on Tuesday. UBS Group raised their target price on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Canaccord Genuity Group increased their price objective on shares of DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a research note on Friday, February 20th. Finally, Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Nine equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $69.23.

DigitalOcean Stock Down 8.1%

DOCN opened at $54.46 on Wednesday. The stock’s fifty day moving average is $56.26 and its two-hundred day moving average is $45.30. The company has a market capitalization of $5.01 billion, a P/E ratio of 21.53, a PEG ratio of 8.33 and a beta of 1.77. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $70.43.

Institutional Investors Weigh In On DigitalOcean

Several institutional investors have recently bought and sold shares of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of DigitalOcean by 5.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock worth $11,342,000 after purchasing an additional 16,162 shares in the last quarter. Intech Investment Management LLC increased its position in DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock valued at $1,317,000 after buying an additional 14,655 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in DigitalOcean by 12.9% during the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 18,884 shares of the company’s stock valued at $539,000 after buying an additional 2,155 shares in the last quarter. AlphaQuest LLC raised its stake in DigitalOcean by 66.5% in the second quarter. AlphaQuest LLC now owns 15,386 shares of the company’s stock valued at $439,000 after buying an additional 6,145 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd acquired a new stake in DigitalOcean in the second quarter worth about $478,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean News Roundup

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 beat and AI momentum: Management reported AI-specific ARR of ~$120M, accelerating revenue growth and raised 2026 guidance — evidence the company is winning higher‑value AI/inference workloads and generating stickier platform revenue. MarketBeat: DigitalOcean’s AI Surge
• Positive Sentiment: Analyst upgrades and higher price targets: Multiple firms raised targets (examples include Barclays, Bank of America and Cantor Fitzgerald), signaling growing analyst confidence — new targets cited in the $69–$86 range. Barclays raise BofA raise Cantor Fitzgerald
• Positive Sentiment: Product / capacity expansion: Company is expanding AMD Instinct GPU capacity and institutional footprint to support inference workloads — helps control costs and supply risk vs. NVIDIA dependency. Yahoo: DigitalOcean expands AMD AI cloud
• Neutral Sentiment: Institutional expansion coverage: Reporting notes DigitalOcean is broadening its cloud infrastructure and institutional reach, which should support longer‑term growth but will require capex execution. KalkineMedia
• Neutral Sentiment: Quarterly metrics analysis available: Analysts are digging into Q4 metrics to reconcile beat/guidance with margins and unit economics — useful for modeling but not an immediate directional catalyst. Zacks Q4 analysis
• Negative Sentiment: Convertible notes hedge risk: A TipRanks analysis flags complexity around DigitalOcean’s 2030 convertible notes hedge — potential dilution, pricing and counterparty risks that could concern shareholders. TipRanks: Convertible notes hedge risk
• Negative Sentiment: Bear/bubble caution: Critics warn the current rally echoes prior cycles (valuation/speculation risks) and highlight margin/cash‑flow tradeoffs as capex ramps to meet demand. Seeking Alpha: It’s 2022 All Over Again

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.