DigitalOcean’s Evolution to an Agentic Cloud Platform Drives Sustained Growth and Higher Monetization

Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on DigitalOcean Holdings, boosting the price target to $107.00.

Wamsi Mohan has given his Buy rating due to a combination of factors, primarily the view that DigitalOcean is transitioning from a basic AI infrastructure provider into a more sophisticated, consumption-driven agentic cloud platform. He believes this evolution should enhance recurring revenue per megawatt and support a more sustainable growth profile, as the company monetizes not only compute but also higher-value services like inference, storage, databases, and orchestration.

Mohan also highlights strong demand that currently exceeds available capacity, with management focused on onboarding customers likely to adopt more of the full stack over time, which could lift monetization above the current ARR per megawatt levels. Additionally, recent product and platform improvements, growing traction with larger customers, and the anticipated expansion of the addressable market via serverless inferencing underpin his confidence, leading him to reaffirm a Buy rating and lift his price objective to $107 based on a higher free cash flow multiple.

In another report released on April 7, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a $102.00 price target.