Oppenheimer Issues Positive Forecast for DigitalOcean (NYSE:DOCN) Stock Price

DigitalOcean (NYSE:DOCN) had its target price lifted by Oppenheimer from $60.00 to $85.00 in a research note released on Wednesday morning,Benzinga reports. The firm currently has an outperform rating on the stock.

Other research analysts also recently issued reports about the stock. UBS Group raised their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Wall Street Zen lowered DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Citigroup restated a “buy” rating on shares of DigitalOcean in a research report on Friday, February 13th. Barclays raised their price target on DigitalOcean from $63.00 to $69.00 and gave the company an “overweight” rating in a report on Wednesday. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Nine equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $69.23.

DigitalOcean Trading Down 5.5%

DOCN stock opened at $59.32 on Wednesday. The firm has a 50 day moving average of $56.09 and a 200-day moving average of $45.23. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43. The firm has a market capitalization of $5.43 billion, a P/E ratio of 23.45, a price-to-earnings-growth ratio of 8.81 and a beta of 1.77.

Institutional Trading of DigitalOcean

Several institutional investors have recently added to or reduced their stakes in DOCN. Allworth Financial LP grew its stake in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after buying an additional 255 shares during the last quarter. Huntington National Bank boosted its stake in shares of DigitalOcean by 638.3% during the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. bought a new position in shares of DigitalOcean in the fourth quarter worth approximately $32,000. Wilmington Savings Fund Society FSB purchased a new position in shares of DigitalOcean in the third quarter worth $37,000. Finally, Transamerica Financial Advisors LLC raised its holdings in DigitalOcean by 417.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after buying an additional 631 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 beat and AI traction — DOCN topped revenue and EPS estimates; management reported AI-specific ARR of ~$120M (150% YoY) and signs of up‑market customer expansion and low churn, which supports a re-rating for the business model. DigitalOcean’s AI Surge: The Cloud Underdog Swims Upstream
• Positive Sentiment: Broad analyst optimism — Multiple firms raised price targets (examples: BofA to $86, Oppenheimer to $85, Goldman to $78, Cantor Fitzgerald/Citizens/JMP/Citizens lifts), signaling buy-side conviction that DOCN’s AI/inference positioning supports materially higher valuation. Analyst Price Target Coverage
• Neutral Sentiment: Strategic moves to secure capacity — DigitalOcean expanded its AMD Instinct GPU footprint to improve price‑performance and supply resilience vs. NVIDIA dependency; this supports longer‑term inference capacity but requires capital deployment. DigitalOcean Expands AMD AI Cloud
• Neutral Sentiment: High-margin profile but increased investment — The company reported strong adjusted EBITDA margins (~42% in 2025) and positive GAAP net income, yet plans to intentionally lower free-cash-flow margins (guidance ~15–17% in 2026) as it invests in capacity. DOCN Company Coverage
• Negative Sentiment: Guidance disappointed on EPS — Q1 and FY2026 EPS guidance was well below Street consensus (Q1 EPS guide ~0.22–0.27 vs. ~0.39 consensus; FY26 guide 0.75–1.00 vs. ~1.68 consensus), creating near-term uncertainty around profitability per share and contributing to profit‑taking. DigitalOcean Q4 2025 Financial Results (Press Release / Slides)

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.