Analyst Wamsi Mohan from Bank of America Securities reiterated a Buy rating on DigitalOcean Holdings and increased the price target to $86.00 from $72.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors pointing to faster growth and attractive upside potential. He highlights management’s outlook for revenue acceleration, with growth expected to surpass 30% in FY27 as new AI-related offerings scale and larger customers expand usage, even though FY26 will be a transitional year with margins temporarily pressured by data center capacity investments.
He also underscores the strong quality of recurring revenue, including rapid expansion in $1 million-plus customers, healthy Digital Native Enterprise ARR with solid retention, and fast-growing AI ARR concentrated in higher-value inference and core cloud workloads. Finally, he notes that despite near-term margin compression, expanding GPU capacity, a rising mix of AI and enterprise customers, and an increased price objective of $86 based on long‑term earnings power justify a Buy rating.
Mohan covers the Technology sector, focusing on stocks such as HP, International Business Machines, and Western Digital. According to TipRanks, Mohan has an average return of 29.9% and a 60.74% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $69.00 price target.