DigitalOcean (NYSE:DOCN) Price Target Raised to $85.00

DigitalOcean (NYSE:DOCN) had its target price upped by Oppenheimer from $60.00 to $85.00 in a research report report published on Wednesday morning,Benzinga reports. They currently have an outperform rating on the stock.

A number of other analysts have also commented on the company. Bank of America lifted their price target on DigitalOcean from $72.00 to $86.00 and gave the company a “buy” rating in a research note on Wednesday. Royal Bank Of Canada set a $60.00 price objective on shares of DigitalOcean in a report on Tuesday. Cantor Fitzgerald lifted their target price on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a research report on Wednesday. UBS Group upped their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. Finally, Piper Sandler reiterated a “neutral” rating and set a $67.00 price target on shares of DigitalOcean in a report on Tuesday. Nine investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $69.23.

DigitalOcean Stock Performance

Shares of DOCN opened at $56.09 on Wednesday. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $70.43. The stock has a market capitalization of $5.16 billion, a price-to-earnings ratio of 22.17, a PEG ratio of 20.44 and a beta of 1.77. The stock has a fifty day moving average of $56.43 and a 200-day moving average of $45.48.

Institutional Investors Weigh In On DigitalOcean

Institutional investors have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in DigitalOcean by 5.0% during 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 boosted its position in DigitalOcean by 59.2% during the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock valued at $1,317,000 after acquiring an additional 14,655 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its holdings in DigitalOcean by 12.9% during the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 18,884 shares of the company’s stock worth $539,000 after acquiring an additional 2,155 shares during the period. AlphaQuest LLC raised its position in shares of DigitalOcean by 66.5% in the 2nd quarter. AlphaQuest LLC now owns 15,386 shares of the company’s stock worth $439,000 after acquiring an additional 6,145 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd acquired a new position in shares of DigitalOcean in the 2nd quarter valued at about $478,000. 49.77% of the stock is owned by institutional investors.

Key DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 AI momentum — DigitalOcean said its annual run‑rate revenue for its AI business jumped ~150% year‑over‑year in Q4, underscoring faster growth in its higher‑margin AI offerings aimed at SMBs, which supports a higher growth multiple. This Glorious Growth Stock Is Up 68% in 12 Months. Here’s Why More Gains Could Follow
• Positive Sentiment: Analyst upgrades — Multiple firms raised price targets recently (Barclays to $69, Bank of America to $86, Cantor Fitzgerald to $83), signaling increased sell‑side confidence in DigitalOcean’s revenue trajectory and margin leverage. DigitalOcean (NYSE:DOCN) Price Target Raised to $86.00 at Bank of America
• Positive Sentiment: Revenue guidance and scale — Management and press reports highlight a push toward >$1B revenue in 2026, which if achieved would mark a material inflection in scale for this SMB‑focused cloud player. DigitalOcean predicts $1B+ in 2026 revenue
• Positive Sentiment: Record Q4 revenue growth — Earnings commentary and highlights point to record revenue growth and improving fundamentals, giving investors more conviction in sustained topline expansion. DigitalOcean Holdings Inc (DOCN) Q4 2025 Earnings Call Highlights: Record Revenue Growth and …
• Positive Sentiment: Institutional expansion — Reports of strengthening cloud infrastructure presence and institutional expansion suggest broader market adoption beyond core SMB customers, supporting longer‑term growth. DigitalOcean (NYSE:DOCN) Strengthens Cloud Infrastructure Presence With Institutional Expansion
• Neutral Sentiment: Investor access / visibility — CEO and CFO will present at the Morgan Stanley TMT conference (March 3); the fireside chat and webcast increase investor access and may amplify guidance or detail AI monetization plans. DigitalOcean to Participate in Morgan Stanley Technology, Media & Telecom Conference
• Negative Sentiment: Profit‑taking volatility — After hitting a record high, the stock has seen pullbacks driven by short‑term profit‑taking, which can amplify intraday moves and create selling pressure even amid positive fundamentals. DigitalOcean (DOCN) Sheds 8.45% on Profit-Taking After Record High
• Negative Sentiment: Convertible‑note hedge risk — Analysts flagged complexity and potential dilution/counterparty risks tied to DigitalOcean’s 2030 convertible notes hedge, a disclosure that could concern value‑focused investors if dilution scenarios materialize. DigitalOcean’s 2030 Convertible Notes Hedge Poses Complex Dilution, Pricing, and Counterparty Risks

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.