DigitalOcean (NYSE:DOCN) Stock Price Expected to Rise, Citizens Jmp Analyst Says

DigitalOcean (NYSE:DOCN) had its target price upped by equities researchers at Citizens Jmp from $60.00 to $83.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has a “market outperform” rating on the stock. Citizens Jmp’s price target would suggest a potential upside of 52.41% from the company’s previous close.

A number of other equities research analysts also recently commented on DOCN. Cantor Fitzgerald raised their target price on DigitalOcean from $68.00 to $83.00 and gave the company an “overweight” rating in a report on Wednesday. Bank of America increased their price target on shares of DigitalOcean from $72.00 to $86.00 and gave the company a “buy” rating in a report on Wednesday. Oppenheimer began coverage on shares of DigitalOcean in a report on Monday, November 10th. They set an “outperform” rating and a $60.00 price objective on the stock. Barclays increased their target price on shares of DigitalOcean from $49.00 to $63.00 and gave the company an “overweight” rating in a report on Monday, January 12th. Finally, Canaccord Genuity Group boosted their price target on DigitalOcean from $65.00 to $80.00 and gave the stock a “buy” rating in a research note on Friday, February 20th. Nine research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, DigitalOcean presently has an average rating of “Moderate Buy” and an average target price of $69.23.

DigitalOcean Price Performance

DOCN opened at $54.46 on Wednesday. The business has a 50 day simple moving average of $56.26 and a 200-day simple moving average of $45.30. The stock has a market capitalization of $5.01 billion, a P/E ratio of 21.53, a P/E/G ratio of 8.33 and a beta of 1.77. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43.

Institutional Trading of DigitalOcean

Several large investors have recently modified their holdings of DOCN. Allworth Financial LP raised its position in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the last quarter. Huntington National Bank increased its position in DigitalOcean by 638.3% during the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after buying an additional 517 shares in the last quarter. NBC Securities Inc. purchased a new position in DigitalOcean during the fourth quarter worth $32,000. Wilmington Savings Fund Society FSB acquired a new position in shares of DigitalOcean in the third quarter worth $37,000. Finally, Transamerica Financial Advisors LLC lifted its position in shares of DigitalOcean by 417.9% in the fourth quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after acquiring an additional 631 shares in the last quarter. 49.77% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting 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

About DigitalOcean

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.