DigitalOcean (NYSE:DOCN) Price Target Raised to $83.00

DigitalOcean (NYSE:DOCN) had its price target lifted by analysts at Cantor Fitzgerald from $68.00 to $83.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Cantor Fitzgerald’s price objective suggests a potential upside of 31.76% from the stock’s previous close.

Other research analysts have also issued reports about the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Citigroup reaffirmed a “buy” rating on shares of DigitalOcean in a research report on Friday, February 13th. Barclays lifted their price objective on DigitalOcean from $49.00 to $63.00 and gave the company an “overweight” rating in a report on Monday, January 12th. UBS Group increased their target price on DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Finally, Piper Sandler restated a “neutral” rating and set a $67.00 target price on shares of DigitalOcean in a report on Tuesday. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and an average target price of $59.54.

DigitalOcean Stock Up 6.3%

Shares of NYSE DOCN opened at $63.00 on Wednesday. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $70.43. The stock has a market cap of $5.76 billion, a price-to-earnings ratio of 25.40, a P/E/G ratio of 8.32 and a beta of 1.76. The company’s fifty day moving average is $55.78 and its 200-day moving average is $45.13.

Hedge Funds Weigh In On DigitalOcean

A number of large investors have recently modified their holdings of the business. Norges Bank bought a new stake in DigitalOcean during the second quarter worth about $22,633,000. Alyeska Investment Group L.P. bought a new stake in shares of DigitalOcean during the 3rd quarter worth approximately $21,808,000. Arrowstreet Capital Limited Partnership boosted 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 last quarter. Vanguard Group Inc. grew its stake in shares of DigitalOcean by 5.0% in the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after buying an additional 442,617 shares in the last quarter. Finally, Franklin Resources Inc. grew its stake in shares of DigitalOcean by 784.2% in the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after buying an additional 438,411 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 results beat consensus: EPS of $0.44 vs. $0.38 expected and revenue of ~$242M, signaling better-than-expected near-term performance. DigitalOcean (NYSE:DOCN) Beats Q4 CY2025 Sales Expectations
• Positive Sentiment: AI momentum: management reported a large AI ARR ramp (reported ~150% ARR growth for AI-related revenue), suggesting durable, higher‑value customer adoption in inference workloads. AI Momentum Propels DigitalOcean Past Estimates With 150% ARR Surge
• Positive Sentiment: Up‑market traction and retention: large‑customer spending rose substantially (>$1M customers +123%), 0% churn among top customers this quarter and NDR ~101%, indicating stickier, higher‑quality revenue. DigitalOcean (DOCN) Q4 2025 Earnings Transcript
• Positive Sentiment: Strategic GPU diversification: expanded AMD Instinct GPU deployment to improve price/performance and supply resiliency for inference workloads. This supports competitive positioning vs. hyperscalers. DigitalOcean Expands AMD AI Cloud As Investors Weigh Growth And Margins
• Positive Sentiment: Analyst upgrade: Bank of America raised its price target (to $86) and maintains a buy rating, providing incremental buy-side validation. Benzinga – Bank of America price target raise
• Neutral Sentiment: Profitability: DigitalOcean reported strong GAAP net income and healthy margins for FY2025, underscoring that growth is not coming at the expense of profitability. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Market dynamics: relatively elevated short interest (~10%+) and the stock’s mid‑cap profile can amplify moves as news validates the AI growth story (potential technical support for further rallies).
• Negative Sentiment: Guidance cut on EPS: management issued Q1 and FY2026 EPS ranges below Street consensus (Q1 EPS guide 0.22–0.27 vs. ~0.39 consensus; FY guide 0.75–1.00 vs. ~1.68), which may temper expectations on near‑term profitability. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Near‑term free‑cash‑flow pressure: management expects lower FCF margins in 2026 (investing in data centers/capex to meet demand), which could worry income‑sensitive investors despite being growth‑oriented spending.

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.