DigitalOcean price target lowered to $41 from $46 at Goldman Sachs

Goldman Sachs analyst Gabriela Borges lowered the firm’s price target on DigitalOcean (DOCN) to $41 from $46 but keeps a Buy rating on the shares. The stock fell 14%, with the reaction being driven by concerns that select pockets of weakness become more pronounced through the year, and that it may take longer or cost more for DigitalOcean’s improved product and go-to-market strategy to drive durable growth, the analyst tells investors in a research note. The company feels confident however in the stability of the customer base and its FY25 guide given its vertically diverse digital native enterprise exposure, the firm adds.