Goldman Sachs double upgraded DigitalOcean to Buy from Sell with an unchanged price target of $33. The analyst believes cyclical risks are priced in with the shares down 7% year-to-date while the company’s structural improvements are underappreciated. The business is now approaching a “cyclical trough,” based on indicators in the small business ecosystem am contributions from DigitalOcean’s newer initiatives such as the recent acquisition of Paperspace and continued ramping of Cloudways, the analyst tells investors in a research note. Goldman expects better revenue growth and continued free cash flow margin expansion.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on DOCN:
- DigitalOcean (NYSE:DOCN) Soars on Upbeat Q3 Performance
- DigitalOcean sees FY23 EPS $1.52-$1.54, consensus $1.46
- DigitalOcean sees Q EPS 36c-37c, consensus 38c
- DigitalOcean reports Q3 EPS 20c, consensus 37c
- DigitalOcean Holdings options imply 11.5% move in share price post-earnings
Questions or Comments about the article? Write to editor@tipranks.com