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

DigitalOcean (NYSE:DOCN) had its price target increased by Barclays from $63.00 to $69.00 in a report issued on Wednesday,Benzinga reports. The firm currently has an overweight rating on the stock.

A number of other analysts have also issued reports on the company. Citigroup reiterated a “buy” rating on shares of DigitalOcean in a research note on Friday, February 13th. Oppenheimer initiated coverage on DigitalOcean in a research report on Monday, November 10th. They set an “outperform” rating and a $60.00 price target on the stock. Canaccord Genuity Group raised their price objective on shares of DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a research report on Friday, February 20th. UBS Group boosted their price objective on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research note on Thursday, November 6th. Finally, Royal Bank Of Canada set a $60.00 target price on shares of DigitalOcean in a report on Tuesday. Nine investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $69.23.

DigitalOcean Trading Up 3.4%

DigitalOcean stock opened at $56.09 on Wednesday. The firm has a market capitalization of $5.16 billion, a price-to-earnings ratio of 22.17, a P/E/G ratio of 20.44 and a beta of 1.77. The firm has a 50 day simple moving average of $56.43 and a 200 day simple moving average of $45.48. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $70.43.

Hedge Funds Weigh In On DigitalOcean

Institutional investors have recently made changes to their positions in the stock. Allworth Financial LP lifted its holdings in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after acquiring an additional 255 shares during the last quarter. Huntington National Bank increased its stake in DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after acquiring an additional 517 shares during the last quarter. NBC Securities Inc. purchased a new stake in DigitalOcean during the fourth quarter valued at about $32,000. Wilmington Savings Fund Society FSB bought a new stake in DigitalOcean during the third quarter worth about $37,000. Finally, Transamerica Financial Advisors LLC boosted its holdings in shares of DigitalOcean by 417.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock worth $38,000 after purchasing an additional 631 shares in the last quarter. Institutional investors 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 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

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.