Morgan Stanley has adjusted its price target for DigitalOcean (DOCN, Financial), reducing it from $52 to $41, while maintaining an Overweight rating on the stock. This decision is part of a broader assessment by the firm, which is reevaluating risk and reward scenarios for numerous software companies under the current tariff risk landscape.
The bank's analysis considers the potential impact of tariff uncertainties on market values and aims to account for these dynamics in share pricing. Despite the lowered target, the Overweight rating indicates Morgan Stanley's continued confidence in DigitalOcean's long-term growth prospects relative to its peers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for DigitalOcean Holdings Inc (DOCN, Financial) is $42.42 with a high estimate of $55.00 and a low estimate of $31.00. The average target implies an upside of 52.19% from the current price of $27.87. More detailed estimate data can be found on the DigitalOcean Holdings Inc (DOCN) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, DigitalOcean Holdings Inc's (DOCN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DigitalOcean Holdings Inc (DOCN, Financial) in one year is $54.88, suggesting a upside of 96.91% from the current price of $27.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DigitalOcean Holdings Inc (DOCN) Summary page.
