DigitalOcean price target raised to $103 from $86 at BofA

BofA raised the firm’s price target on DigitalOcean (DOCN) to $103 from $86 and keeps a Buy rating on the shares after the company announced an $800M securities offering for 10.4M shares and said the proceeds will fund incremental infrastructure capacity, paying down a term loan, potential repayment of remaining 2026 convertible debt principal, and general purposes. Management also noted advanced discussions to secure additional data center capacity due to “unprecedented demand,” says the analyst, who is increasing the multiple applied to the firm’s unchanged FY26 estimates given new balance sheet flexibility and increased capacity expansion.