DigitalOcean price target raised to $155 from $98 at Piper Sandler

Piper Sandler raised the firm’s price target on DigitalOcean (DOCN) to $155 from $98 and keeps a Neutral rating on the shares. The firm notes the market continues to reward acceleration via AI, with DigitalOcean showing no slowdown on this front as shares are up 30%, AI-inferencing is accelerating, and the pipeline is three to four times more than the actual capacity. Piper says there is no denying DigitalOcean should be an inferencing-beneficiary with some differentiation. The firm believes there is a near-term “don’t fight the demand” tactical-aspect, but concerns may arise around mid-term-costs plus “empty calories.”