Barclays has revised its price target for DigitalOcean (DOCN, Financial), reducing it from $48 to $38, while maintaining an Overweight rating on the stock. This adjustment comes as part of the firm's first-quarter earnings preview for the U.S. software sector.
The investment bank anticipates that the first quarter will not significantly impact stocks within the sector. Although initial assessments indicate some weakness, Barclays emphasizes that the situation is manageable. The primary focus for investors is expected to shift towards guidance rather than immediate earnings results.
Barclays analysts express doubts regarding substantial revisions to guidance figures, as the first quarter is generally not a significant period for many companies. The firm suggests that a clearer picture will emerge in the second quarter, leaving the industry in a state of uncertainty until then.
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 54.92% from the current price of $27.38. 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 $54.81, suggesting a upside of 100.18% from the current price of $27.38. 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.
