DigitalOcean price target raised to $42 from $39 at Morgan Stanley

Morgan Stanley analyst Josh Baer raised the firm’s price target on DigitalOcean (DOCN) to $42 from $39 and keeps an Equal Weight rating on the shares. The net new ARR, or NNARR, trend over the last few quarters has been “encouraging,” but the net dollar retention rate has failed to move higher and remains below 100%, the analyst tells investors. Another sequential and year-over-year increase in net new ARR would build confidence growth can accelerate, the analyst adds in a preview.