DigitalOcean Holdings (DOCN – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst David Hynes from Canaccord Genuity reiterated a Buy rating on the stock and has a $45.00 price target.
David Hynes has given his Buy rating due to a combination of factors that highlight DigitalOcean Holdings’ strategic positioning and growth potential. The company is addressing unmet needs for digitally native enterprises that depend heavily on cloud services, offering solutions that are less complex and more competitively priced than those of larger hyperscalers. This approach results in a significantly lower total cost of ownership, making DigitalOcean an attractive option for businesses that are still in their hypergrowth phase.
Additionally, DigitalOcean’s increased product development speed is fostering growth among larger customers and raising their spending potential. The company has set ambitious targets, aiming for an 18-20% growth rate by 2027, supported by a long-term Rule of 40+ framework. Despite recent market volatility affecting stock prices, Hynes sees substantial value in the company’s shares, which are trading at favorable multiples. This, combined with the company’s focus on reaccelerating growth, underpins the Buy rating and the adjusted price target of $45.
In another report released today, Barclays also maintained a Buy rating on the stock with a $48.00 price target.