DigitalOcean initiated with a Buy at Citi

Citi initiated coverage of DigitalOcean (DOCN) with a Buy rating and $45 price target The firm says that while the company’s new leadership lacks extensive public company tenure, the “early fruits” from their strategic initiatives suggest the team “holds the right tools to differentiate” DigitalOcean in the fragmented cloud infrastructure space and deliver sustainable sales growth. The company gradually re-building credibility may take time, but it has “multiple identifiable levers” to reaccelerate organic growth, the analyst tells investors in a research note.