DigitalOcean (NYSE:DOCN) Price Target Raised to $72.00

by · The Cerbat Gem

DigitalOcean (NYSE:DOCN – Free Report) had its target price upped by Bank of America from $60.00 to $72.00 in a research note released on Tuesday,Benzinga reports. Bank of America currently has a buy rating on the stock.

Several other research firms have also recently issued reports on DOCN. Wall Street Zen cut shares of DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Canaccord Genuity Group lifted their target price on shares of DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Cantor Fitzgerald set a $47.00 price target on DigitalOcean and gave the company a “neutral” rating in a report on Thursday, November 6th. UBS Group raised their price objective on DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a report on Thursday, November 6th. Finally, Oppenheimer began coverage on DigitalOcean in a research note on Monday, November 10th. They issued an “outperform” rating and a $60.00 target price for the company. Seven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $50.50.

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DigitalOcean Price Performance

Shares of NYSE:DOCN opened at $56.19 on Tuesday. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $64.09. The stock has a market cap of $5.14 billion, a P/E ratio of 22.66, a P/E/G ratio of 8.65 and a beta of 1.76. The firm has a fifty day moving average price of $49.83 and a 200 day moving average price of $40.76.

DigitalOcean (NYSE:DOCN – Get Free Report) last issued its earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.23. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. The business had revenue of $229.63 million for the quarter, compared to the consensus estimate of $226.55 million. During the same quarter in the previous year, the firm earned $0.52 earnings per share. The business’s quarterly revenue was up 15.9% compared to the same quarter last year. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. Sell-side analysts expect that DigitalOcean will post 1.01 EPS for the current fiscal year.

Institutional Trading of DigitalOcean

A number of institutional investors and hedge funds have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in DigitalOcean by 5.0% in 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 buying an additional 16,162 shares during the last quarter. Intech Investment Management LLC grew its holdings in shares of DigitalOcean by 59.2% in the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after acquiring an additional 14,655 shares during the last quarter. Farther Finance Advisors LLC raised its position in shares of DigitalOcean by 42.3% during the second quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock worth $55,000 after purchasing an additional 572 shares during the period. CX Institutional lifted its holdings in shares of DigitalOcean by 780.5% during the second quarter. CX Institutional now owns 1,039 shares of the company’s stock valued at $30,000 after purchasing an additional 921 shares during the last quarter. Finally, State of Alaska Department of Revenue lifted its holdings in shares of DigitalOcean by 5.9% during the second quarter. State of Alaska Department of Revenue now owns 37,368 shares of the company’s stock valued at $1,067,000 after purchasing an additional 2,086 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean Company Profile

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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.

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