DigitalOcean (DOCN) Stock: $49 Price Target And Buy Rating

By Amit Chowdhry ● May 14, 2022
  • The shares of DigitalOcean Holdings Inc (NYSE: DOCN) have received a $49 price target from Goldman Sachs. These are the details.

The shares of DigitalOcean Holdings Inc (NYSE: DOCN) have received a $49 price target from Goldman Sachs. And Goldman Sachs analyst Gabriela Borges initiated coverage of DigitalOcean with a “Buy” rating.

Borges adjusted the rating based on the view that the company is a clear leader in the cloud infrastructure market for small- to mid-sized businesses and individual developers. And in an upside scenario, Borges believes that DigitalOcean could report $1 billion of revenue in 2024 with $200 million of free cash flow. 

Plus positive free cash flow along with acquisition optionality should provide valuation support for the company in the current environment.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.