In a report released yesterday, Thomas Blakey from Cantor Fitzgerald maintained a Buy rating on DigitalOcean Holdings, with a price target of $68.00.
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Thomas Blakey has given his Buy rating due to a combination of factors that point to both durable growth and an attractive valuation profile for DigitalOcean. He raises his 12‑month price target to $68, implying a revenue multiple that is broadly consistent with the stock’s historical trading range while still leaving room for upside versus peers on a free cash flow basis. His revised forecasts now assume stronger organic annual recurring revenue growth (excluding pricing effects) beginning in 2025, with that momentum extending into 2026, supported by management’s decision to accelerate its 18–20% revenue growth goal by a full year. Blakey also highlights that the company is scaling successfully with larger customers, referencing the Character.ai win as evidence of growing relevance in more demanding workloads.
Blakey expects further benefits as DigitalOcean expands its GPU-centric platform‑as‑a‑service offerings in 2026, positioning the company to better capture AI and high-performance computing demand. He believes an anticipated Analyst Day in the near term could act as a positive catalyst by providing more detail on strategy, growth drivers, and the product roadmap. Underpinning his stance is the view that DigitalOcean’s focus on digital-native businesses and its developer-centric model for delivering hyperscale capabilities to the broader market give it a favorable competitive position. In his analysis, this combination of accelerating growth, operational scaling, and the potential for multiple expansion justifies upgrading the stock to an Overweight/Buy rating.
Blakey covers the Technology sector, focusing on stocks such as SoundHound AI, Inc Class A, CommVault Systems, and Microsoft. According to TipRanks, Blakey has an average return of 6.5% and a 47.42% success rate on recommended stocks.
In another report released on January 27, Bank of America Securities also reiterated a Buy rating on the stock with a $72.00 price target.