Piper Sandler upgraded DigitalOcean Holdings Inc. (DOCN) to Overweight from Neutral, citing the potential for artificial intelligence to accelerate growth. The firm highlighted DigitalOcean’s platform capabilities and appeal to AI startups.
Piper Sandler lowered its price target to $126 from $142. The firm said the recent share-price pullback creates a favorable entry point, outweighing potential near-term pressure on margin and cash-flow estimates.
The firm also sees a possibility that DigitalOcean will raise its annual recurring revenue guidance for 2027.