DigitalOcean (DOCN) Stock: $72 Price Target And Overweight Rating

By Amit Chowdhry ● Apr 5, 2022
  • The shares of DigitalOcean Holdings Inc (NYSE: DOCN) have received a $72 price target from Piper Sandler. These are the details.

The shares of DigitalOcean Holdings Inc (NYSE: DOCN) have received a $72 price target from Piper Sandler. And Piper Sandler analyst James Fish initiated coverage of DigitalOcean with an “Overweight” rating.

Fish noted that DigitalOcean should benefit from the shift of the 18% public cloud workload annual growth where cloud spending is just 23% of broader infrastructure spending today. And while DigitalOcean is a price leader and provides solid support, hyperscaling competitive concerns will persist and likely cap the multiple with the company needing not to invest in more geo-availability along with more into the edge. 

Going forward, Fish sees DigitalOcean as a pure-play on the shift to the cloud. 

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