Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on DOCN stock, giving a Buy rating today.
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Wamsi Mohan has given his Buy rating due to a combination of factors tied to DigitalOcean’s strengthened balance sheet and growth capacity. The ~$800 million securities offering materially improves financial flexibility, enabling the company to fund new infrastructure, reduce existing debt, and prepare for upcoming convertible repayments while supporting ongoing corporate initiatives.
Mohan also highlights that the added capital and leasing capacity could support over 100MW of incremental data center capacity by fiscal 2027, underpinning substantial revenue, EBITDA, and free cash flow upside. He raises the price objective to $103, reflecting higher expected value from agentic AI-driven demand, accelerating ARR growth, and expanding GPU capacity, all supported by leverage that remains comfortably below the 4.0x threshold.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $105.00 price target.