UBS Group Issues Positive Forecast for DigitalOcean (NYSE:DOCN) Stock Price

DigitalOcean (NYSE:DOCN) had its price target boosted by UBS Group from $48.00 to $68.00 in a research note released on Wednesday,Benzinga reports. UBS Group currently has a neutral rating on the stock.

A number of other equities research analysts have also recently issued reports on DOCN. Barclays lifted their price target on shares of DigitalOcean from $63.00 to $69.00 and gave the company an “overweight” rating in a research note on Wednesday. Royal Bank Of Canada set a $60.00 price target on shares of DigitalOcean in a research report on Tuesday. The Goldman Sachs Group raised their target price on DigitalOcean from $50.00 to $78.00 and gave the company a “buy” rating in a research report on Wednesday. Piper Sandler reiterated a “neutral” rating and set a $67.00 price target on shares of DigitalOcean in a research report on Tuesday. Finally, Oppenheimer increased their price objective on DigitalOcean from $60.00 to $85.00 and gave the company an “outperform” rating in a research note on Wednesday. Nine research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, DigitalOcean has a consensus rating of “Moderate Buy” and a consensus target price of $69.23.

DigitalOcean Stock Down 5.5%

DOCN stock opened at $59.32 on Wednesday. The firm has a market cap of $5.43 billion, a P/E ratio of 23.45, a PEG ratio of 8.81 and a beta of 1.77. DigitalOcean has a 52-week low of $25.45 and a 52-week high of $70.43. The company’s 50-day simple moving average is $56.09 and its 200-day simple moving average is $45.23.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Huntington National Bank grew its holdings in shares of DigitalOcean by 638.3% during the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. acquired a new position in shares of DigitalOcean in the 4th quarter worth approximately $32,000. Allworth Financial LP boosted 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 period. Transamerica Financial Advisors LLC raised its position in 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 purchasing an additional 631 shares during the period. Finally, UMB Bank n.a. lifted its stake in DigitalOcean by 242.1% during the fourth quarter. UMB Bank n.a. now owns 821 shares of the company’s stock worth $40,000 after purchasing an additional 581 shares in the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean News Summary

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 beat and AI traction — DOCN topped revenue and EPS estimates; management reported AI-specific ARR of ~$120M (150% YoY) and signs of up‑market customer expansion and low churn, which supports a re-rating for the business model. DigitalOcean’s AI Surge: The Cloud Underdog Swims Upstream
• Positive Sentiment: Broad analyst optimism — Multiple firms raised price targets (examples: BofA to $86, Oppenheimer to $85, Goldman to $78, Cantor Fitzgerald/Citizens/JMP/Citizens lifts), signaling buy-side conviction that DOCN’s AI/inference positioning supports materially higher valuation. Analyst Price Target Coverage
• Neutral Sentiment: Strategic moves to secure capacity — DigitalOcean expanded its AMD Instinct GPU footprint to improve price‑performance and supply resilience vs. NVIDIA dependency; this supports longer‑term inference capacity but requires capital deployment. DigitalOcean Expands AMD AI Cloud
• Neutral Sentiment: High-margin profile but increased investment — The company reported strong adjusted EBITDA margins (~42% in 2025) and positive GAAP net income, yet plans to intentionally lower free-cash-flow margins (guidance ~15–17% in 2026) as it invests in capacity. DOCN Company Coverage
• Negative Sentiment: Guidance disappointed on EPS — Q1 and FY2026 EPS guidance was well below Street consensus (Q1 EPS guide ~0.22–0.27 vs. ~0.39 consensus; FY26 guide 0.75–1.00 vs. ~1.68 consensus), creating near-term uncertainty around profitability per share and contributing to profit‑taking. DigitalOcean Q4 2025 Financial Results (Press Release / Slides)

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.