DigitalOcean price target raised to $36 from $33 at Stifel

Stifel raised the firm’s price target on DigitalOcean (DOCN) to $36 from $33 and keeps a Hold rating on the shares. Shares are up about 25% following a “solid 2Q beat-and-raise print,” notes the analyst, who also notes that management raised its FY25 guidance “across the board.” DigitalOcean should sustain its mid-teens revenue growth rate, but given potential calendar year 2026 free cash flow headwinds related to debt refinancing, the firm expects the multiple to “remain at current levels,” the analyst added.