DigitalOcean (NYSE:DOCN) Price Target Raised to $83.00 at Citizens Jmp

DigitalOcean (NYSE:DOCN) had its price objective lifted by Citizens Jmp from $60.00 to $83.00 in a report released on Wednesday morning,Benzinga reports. They currently have a market outperform rating on the stock.

Other equities research analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a report on Sunday, January 4th. 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 note on Thursday, November 6th. Bank of America lifted their price objective on shares of 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 target price on DigitalOcean in a research report on Tuesday. Finally, Cantor Fitzgerald lifted their price target on DigitalOcean from $68.00 to $83.00 and gave the company an “overweight” rating in a research report on Wednesday. Nine research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $69.23.

DigitalOcean Trading Down 5.5%

Shares of NYSE DOCN opened at $59.32 on Wednesday. The stock has a fifty day simple moving average of $56.09 and a two-hundred day simple moving average of $45.23. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $70.43. The firm has a market cap of $5.43 billion, a price-to-earnings ratio of 23.45, a price-to-earnings-growth ratio of 8.81 and a beta of 1.77.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP raised its holdings in shares of DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after acquiring an additional 255 shares in the last quarter. Huntington National Bank increased its position 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 purchasing an additional 517 shares during the last quarter. 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 stake in DigitalOcean in the third quarter valued at approximately $37,000. Finally, Transamerica Financial Advisors LLC lifted its position in DigitalOcean by 417.9% during the fourth quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after purchasing an additional 631 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting 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.