$DOCN (-0,64%) . There have been some positive assessments recently. Among others, fresh from Cantor Fitzgerald today.
Investing.com - The analyst firm Cantor Fitzgerald is much more optimistic about the cloud provider DigitalOcean (NYSE:DOCN). The analysts upgraded the stock from "Neutral" to "Overweight" and at the same time raised the price target from 47 to 68 dollars. The decisive factors were higher growth expectations for sales and a noticeable upturn in new customer acquisition.
According to the experts, DigitalOcean is benefiting from the continued strong demand for cloud infrastructure. The company is deliberately focusing on small and medium-sized customers and positioning itself as a leaner, cheaper alternative to large platforms such as Amazon Web Services, Microsoft Azure and Google Cloud. This approach is increasingly paying off, it said.
Cantor's updated revenue estimates for 2026 and 2027 are now above previous market expectations. This is primarily supported by increasing organic growth in annual recurring revenues, adjusted for price effects. The analysts expect this trend to continue in 2026. They see the fact that the management intends to achieve its sales target of 18-20% growth for 2027 a year earlier as an additional signal of operational confidence.
The experts also see further potential on the customer side. Following recent deals with major customers - including Character.ai - Cantor expects further success in the upper market segment. In addition, the GPU-based Platform-as-a-Service offering should make a greater contribution to growth from 2026. The demand for AI infrastructure is increasing significantly and DigitalOcean is "well positioned" in this area, the analysts wrote.
In terms of valuation, Cantor still sees room for maneuver. The new price target corresponds to around six times the sales expected for 2027 and is therefore in line with the average sales multiple of the past three years. Based on the forecast free cash flow, the valuation implies a multiple of around 30 - and thus a discount compared to comparable infrastructure software providers.
Strategically, the analysts believe that the company can gradually expand its current focus on developers and digital-savvy customers. "This basis allows DigitalOcean to open up to larger customers in a controlled manner," they say. This could enable profitable growth and a higher valuation in the long term. They also see an analyst day in the coming months as a possible stimulus if the company presents new targets or strategic guidelines there.
