The Goldman Sachs Group Increases DigitalOcean (NYSE:DOCN) Price Target to $78.00

DigitalOcean (NYSE:DOCN) had its price target lifted by analysts at The Goldman Sachs Group from $50.00 to $78.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a “buy” rating on the stock. The Goldman Sachs Group’s price target indicates a potential upside of 43.22% from the company’s current price.

Other analysts have also recently issued reports about the stock. Citizens Jmp lifted their target price on shares of DigitalOcean from $60.00 to $83.00 and gave the company a “market outperform” rating in a research note on Wednesday. Barclays raised their price target on shares of DigitalOcean from $63.00 to $69.00 and gave the company an “overweight” rating in a report on Wednesday. Royal Bank Of Canada set a $60.00 price objective on shares of DigitalOcean in a report on Tuesday. Citigroup reissued a “buy” rating on shares of DigitalOcean in a research report on Friday, February 13th. Finally, Wall Street Zen cut DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Nine research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $69.23.

DigitalOcean Price Performance

Shares of DigitalOcean stock opened at $54.46 on Wednesday. The firm has a market cap of $5.01 billion, a price-to-earnings ratio of 21.53, a P/E/G ratio of 8.33 and a beta of 1.77. The stock has a 50-day simple moving average of $56.26 and a 200-day simple moving average of $45.30. DigitalOcean has a 52-week low of $25.45 and a 52-week high of $70.43.

Institutional Investors Weigh In On DigitalOcean

Hedge funds have recently bought and sold shares of the company. Allworth Financial LP increased its stake in shares of DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the period. Huntington National Bank boosted its stake in DigitalOcean by 638.3% during the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. acquired a new stake in DigitalOcean in the 4th quarter valued at approximately $32,000. Wilmington Savings Fund Society FSB bought a new position in DigitalOcean in the 3rd quarter worth approximately $37,000. Finally, Transamerica Financial Advisors LLC increased its position in DigitalOcean by 417.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock worth $38,000 after buying an additional 631 shares during the period. 49.77% of the stock is currently owned by institutional investors.

Trending Headlines about DigitalOcean

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.