DigitalOcean (NYSE:DOCN) Price Target Raised to $69.00 at Barclays

DigitalOcean (NYSE:DOCN) had its target price hoisted by equities research analysts at Barclays from $63.00 to $69.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Barclays‘s price target indicates a potential upside of 17.55% from the company’s previous close.

Other research analysts have also issued research reports about the stock. Cantor Fitzgerald raised their price target on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Wednesday. Citizens Jmp lifted their target price on shares of DigitalOcean from $60.00 to $83.00 and gave the stock a “market outperform” rating in a research note on Wednesday. Royal Bank Of Canada set a $60.00 target price on shares of DigitalOcean in a report on Tuesday. Citigroup reissued a “buy” rating on shares of DigitalOcean in a research report on Friday, February 13th. Finally, Piper Sandler reissued a “neutral” rating and issued a $67.00 price objective on shares of DigitalOcean in a research note on Tuesday. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $61.64.

DigitalOcean Stock Performance

Shares of DOCN traded down $4.04 during mid-day trading on Wednesday, reaching $58.70. 1,158,842 shares of the company were exchanged, compared to its average volume of 3,145,854. The business has a 50 day simple moving average of $55.78 and a two-hundred day simple moving average of $45.13. The stock has a market capitalization of $5.37 billion, a PE ratio of 23.80, a PEG ratio of 8.32 and a beta of 1.76. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $70.43.

Institutional Investors Weigh In On DigitalOcean

Hedge funds have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of 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 purchasing an additional 16,162 shares during the period. Intech Investment Management LLC increased its stake in DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock valued at $1,317,000 after purchasing an additional 14,655 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in DigitalOcean by 12.9% during the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 18,884 shares of the company’s stock worth $539,000 after buying an additional 2,155 shares during the last quarter. AlphaQuest LLC raised its holdings in DigitalOcean by 66.5% during the second quarter. AlphaQuest LLC now owns 15,386 shares of the company’s stock worth $439,000 after buying an additional 6,145 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd acquired a new position in shares of DigitalOcean during the second quarter valued at about $478,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean News Roundup

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.