Oppenheimer Boosts DigitalOcean (NYSE:DOCN) Price Target to $85.00

DigitalOcean (NYSE:DOCN) had its price target raised by equities research analysts at Oppenheimer from $60.00 to $85.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Oppenheimer’s price target indicates a potential upside of 40.65% from the stock’s previous close.

A number of other equities research analysts also recently weighed in on the company. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a report on Tuesday. The Goldman Sachs Group boosted their price target on DigitalOcean from $50.00 to $78.00 and gave the company a “buy” rating in a research note on Wednesday. Citizens Jmp increased their price objective on DigitalOcean from $60.00 to $83.00 and gave the stock a “market outperform” rating in a research note on Wednesday. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Finally, Barclays upped their target price on shares of DigitalOcean from $63.00 to $69.00 and gave the stock an “overweight” rating in a report on Wednesday. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $66.07.

DigitalOcean Stock Performance

Shares of NYSE:DOCN traded down $2.31 during midday trading on Wednesday, reaching $60.44. 2,651,913 shares of the company’s stock were exchanged, compared to its average volume of 3,193,634. The company’s 50 day simple moving average is $55.78 and its two-hundred day simple moving average is $45.13. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43. The firm has a market capitalization of $5.53 billion, a PE ratio of 24.38, a price-to-earnings-growth ratio of 8.32 and a beta of 1.76.

Institutional Investors Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DOCN. Huntington National Bank raised its stake in shares of DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after acquiring an additional 517 shares during the last quarter. NBC Securities Inc. acquired a new stake in shares of DigitalOcean in the fourth quarter valued at approximately $32,000. Allworth Financial LP raised its position in DigitalOcean by 54.4% in 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 last quarter. Transamerica Financial Advisors LLC lifted its holdings in 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 buying an additional 631 shares in the last quarter. Finally, UMB Bank n.a. boosted its position in DigitalOcean by 242.1% in the 4th quarter. UMB Bank n.a. now owns 821 shares of the company’s stock valued at $40,000 after buying an additional 581 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

Key Headlines Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 financial beat — DOCN reported EPS of $0.44 and revenue of $242.4M, both above consensus; management highlighted accelerating AI-driven ARR and revenue growth. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Strong AI momentum — Company says AI-specific ARR surged (reporting large % growth), with expanding high-value customers (spend >$1M up materially) and low churn; this supports a durable growth thesis tied to inference workloads. DigitalOcean: AI Acceleration Creates A Durable Rally To Bank On
• Positive Sentiment: Strategic capacity and supply moves — DigitalOcean expanded its AMD-powered AI cloud (instinct GPUs) to improve price-performance and diversify supply, supporting capacity scaling for AI customers. DigitalOcean Expands AMD AI Cloud As Investors Weigh Growth And Margins
• Neutral Sentiment: Analyst upgrades and price-target lifts — Multiple firms (Bank of America, Cantor Fitzgerald, Barclays, Citizens Jmp) raised ratings/targets, signaling bullish forward views and adding potential upside but not immediate fundamental change. (Sources: broker notes circulated today.)
• Negative Sentiment: Conservative EPS guidance — Q1 2026 EPS guidance of $0.22–$0.27 and FY2026 EPS of $0.75–$1.00 came in well below consensus, prompting concern over near-term profitability metrics despite revenue targets that were roughly in line. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Market reaction to outlook — Several outlets noted the stock dipped in spite of the beat because the EPS outlook disappointed traders, creating short-term selling pressure even as longer‑term narratives improved. DigitalOcean rises after Q4 beat

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.