Jul. 23 at 12:53 AM
Stifel upgraded DigitalOcean Holdings to Buy from Hold and raised its price target to
$160 from
$135, citing accelerating demand for AI infrastructure, higher GPU pricing, and planned capacity expansion that could drive stronger revenue and earnings growth over the coming years.
The firm highlighted DigitalOcean’s recent GPU price increases, which it expects to significantly boost revenue generated per megawatt of capacity. Stifel also pointed to the company’s recent debt-to-equity conversion, saying it improves financial flexibility for future data-center investments while keeping leverage within management’s targets.
Looking ahead, Stifel introduced 2028 forecasts above Wall Street expectations, projecting
$2.56 billion in revenue and
$3.57 EPS, versus consensus estimates of
$2.45 billion and
$2.91, respectively. The broker believes DigitalOcean is well positioned to benefit from the broader adoption of open-source AI models and growing cloud-computing demand as AI costs decline
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