DigitalOcean price target raised to $31 from $28 at BofA

BofA raised the firm’s price target on DigitalOcean (DOCN) to $31 from $28 and keeps an Underperform rating on the shares following a “beat across the board” in Q4. Though some wins from cloud competitors and multi-year contracts are “favorable,” the firm reiterates an Underperform rating as it remains concerned that a weak small-to-midsized business market and increased capex and AI investments can lead to near-term pressure on free cash flow.