DigitalOcean (NYSE:DOCN) Stock Price Expected to Rise, UBS Group Analyst Says

DigitalOcean (NYSE:DOCN) had its price target lifted by equities research analysts at UBS Group from $48.00 to $68.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. UBS Group’s price target indicates a potential upside of 24.86% from the company’s current price.

DOCN has been the topic of several other research reports. Stifel Nicolaus set a $57.00 price target on shares of DigitalOcean in a research report on Tuesday. Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Citigroup reiterated a “buy” rating on shares of DigitalOcean in a report on Friday, February 13th. Cantor Fitzgerald raised their price target on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $67.00 price target on shares of DigitalOcean in a research report on Tuesday. Nine equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, DigitalOcean has an average rating of “Moderate Buy” and a consensus price target of $69.23.

DigitalOcean Stock Performance

Shares of DigitalOcean stock opened at $54.46 on Wednesday. The business’s 50 day moving average price is $56.26 and its 200 day moving average price is $45.30. The company has a market cap of $5.01 billion, a price-to-earnings ratio of 21.53, a PEG ratio of 8.33 and a beta of 1.77. DigitalOcean has a one year low of $25.45 and a one year high of $70.43.

Hedge Funds Weigh In On DigitalOcean

Hedge funds have recently made changes to their positions in the stock. Norges Bank purchased a new stake in DigitalOcean in the second quarter valued at approximately $22,633,000. Alyeska Investment Group L.P. acquired a new stake in shares of DigitalOcean in the third quarter valued at $21,808,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of DigitalOcean by 90.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock valued at $57,496,000 after buying an additional 568,823 shares during the period. Vanguard Group Inc. lifted its stake in DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after acquiring an additional 442,617 shares in the last quarter. Finally, Franklin Resources Inc. lifted its stake in DigitalOcean by 784.2% during the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock worth $23,786,000 after acquiring an additional 438,411 shares in the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

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.