- The shares of DigitalOcean Holdings Inc (NYSE: DOCN) have received an $80 price target from Oppenheimer. Could it hit $80?
The shares of DigitalOcean Holdings Inc (NYSE: DOCN) have received an $80 price target from Oppenheimer. And Oppenheimer analyst Timothy Horan reiterated an “Outperform” rating on the shares.
Horan adjusted the rating after the company announced plans for increasing prices effective July 1.
“Droplet pricing offers will be hiked by 20%, which signals management’s confidence in their position in the market, which we agree with. We think this is associated with 80% of their revenues,” wrote Horan in a research note. “While some slight churn is expected, a new (less expensive) $4 offering will help very small customers. Larger customers will likely see rates increase 15%-20% over the next two years as contract renewals are negotiated.”
Horan had raised the 2022 and 2023 estimates. And in this inflationary environment, Horan expects companies with the best pricing power to outperform as they are using the money for improving service.
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