DigitalOcean price target raised to $179 from $78 at Goldman Sachs

Goldman Sachs raised the firm’s price target on DigitalOcean (DOCN) to $179 from $78 and keeps a Buy rating on the shares. The company’s Q1 revenue topped estimates despite the high bar coming into the print, driven by expectations of increased GPU capacity, the analyst tells investors in a research note. Goldman Sachs adds that we are still in the early innings of inference workload adoption, and DigitalOcean is well positioned to continue to capture share among AI Natives given its full-stack platform and focus on production AI use cases.