DigitalOcean price target raised to $120 from $80 at Canaccord

Canaccord analyst David Hynes raised the firm’s price target on DigitalOcean (DOCN) to $120 from $80 and keeps a Buy rating on the shares. The firm updated its model ahead of Q1 earnings next week as its Deploy product deepens their conviction in inference growth thesis. The upward revision reflects the recent roughly $810M equity raise, which raises the prospects for additional MW capacity. Embedding conservative assumptions for utilization rate and rev-per-MW, the firm thinks the company can grow by about 40% in FY27 and FY28.