Short Sellers May Be Regretting Shorting DigitalOcean Holdings (DOCN) Stock After Latest Analyst Rating DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the 7 Worst Cloud Stocks To Buy According to Short Sellers.
On June 3, KeyBanc initiated coverage on DigitalOcean Holdings, Inc. (NYSE:DOCN) with an Overweight rating and assigned a price target of $200 to the stock
The price target reflects 15.6% upside from current levels. As AI demand increases, DigitalOcean is investing heavily to build and expand its cloud infrastructure, the analyst told investors in a research note. As a result, the company is expected to generate higher cloud revenues in the coming year.
Analyst Jackson Ader had this to say about the company’s journey and future prospects: “The moment came for DigitalOcean in 2024, when the world began realizing that hyperscalers were unable to keep up with AI workload demand. Customers, both traditional and AI start-ups, turned to DigitalOcean for their AI inference needs and were met with easy deployments, access to storage, memory and CPU compute that was already DigitalOcean’s specialty and, importantly for the stock, an increasing amount of GPU and CPU capacity. We believe DigitalOcean’s playbook has more room to expand.” Earlier, on May 12, UBS also expressed confidence in the company’s long-term growth outlook.