DigitalOcean (NYSE:DOCN) Price Target Raised to $86.00

DigitalOcean (NYSE:DOCN) had its price target upped by stock analysts at Bank of America from $72.00 to $86.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Bank of America‘s price target would suggest a potential upside of 36.52% from the company’s previous close.

DOCN has been the topic of several other research reports. Citigroup reaffirmed a “buy” rating on shares of DigitalOcean in a research note on Friday, February 13th. Oppenheimer assumed coverage on shares of DigitalOcean in a research note on Monday, November 10th. They set an “outperform” rating and a $60.00 target price for the company. Stifel Nicolaus set a $57.00 price objective on shares of DigitalOcean in a report on Tuesday. Barclays lifted 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, Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus target price of $58.38.

DigitalOcean Price Performance

NYSE:DOCN opened at $63.00 on Wednesday. The company’s 50-day moving average is $55.78 and its two-hundred day moving average is $45.13. The firm has a market capitalization of $5.76 billion, a price-to-earnings ratio of 25.40, a PEG ratio of 8.32 and a beta of 1.76. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $70.43.

Institutional Investors Weigh In On DigitalOcean

Several institutional investors have recently modified their holdings of DOCN. Allworth Financial LP grew its stake in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares in the last quarter. Huntington National Bank boosted its position 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 acquiring an additional 517 shares in the last quarter. NBC Securities Inc. purchased a new position in shares of DigitalOcean in the 4th quarter valued at about $32,000. Wilmington Savings Fund Society FSB purchased a new position in shares of DigitalOcean in the 3rd quarter valued at about $37,000. Finally, Transamerica Financial Advisors LLC raised its position in shares of DigitalOcean by 417.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock worth $38,000 after acquiring an additional 631 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

Key DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 beat on both revenue and EPS: DigitalOcean reported $242.4M in revenue and $0.44 EPS, topping consensus and the company’s press release emphasized accelerating top-line momentum. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI ARR and customer expansion are driving upside: management reported an AI-specific ARR surge (roughly 150% YoY) and big-customer spending increased materially, supporting the narrative that DigitalOcean is moving up‑market. AI Momentum Propels DigitalOcean Past Estimates With 150% ARR Surge
• Positive Sentiment: Product/supply diversification with AMD partnership: the company is expanding AMD-powered AI Droplets (Instinct GPUs), which improves cost/performance and supply security versus single-vendor GPU reliance. DigitalOcean Expands AMD AI Cloud As Investors Weigh Growth And Margins
• Neutral Sentiment: High-quality, recurring revenue and profitability: management noted sticky platform revenue (storage, networking, inference) and DigitalOcean reported solid GAAP income and robust margins, underpinning a sustainable business model. DigitalOcean Stock / Company Overview (MarketBeat)
• Neutral Sentiment: Revenue growth outlook raised even as company transitions: management guided to stronger revenue growth (acceleration into 2026/2027) while investing to add capacity — a tradeoff investors should watch. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Near-term EPS guidance came in well below Street expectations (Q1 and FY2026 ranges below consensus), which pressured some investors worrying about margin dilution. DigitalOcean rises after Q4 beat
• Negative Sentiment: Planned higher capex and lower near-term free‑cash‑flow margins (guidance ~15–17% for 2026) mean management is spending to expand supply — this supports growth but can compress cash metrics short-term. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Some accounting/return metrics remain mixed (e.g., an anomalous negative ROE noted in summaries), which could concern value-focused investors until the growth/investment cycle stabilizes. DigitalOcean Earnings Report (MarketBeat)

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.