DigitalOcean's Q4 Results, Guidance Ahead of Expectations, Morgan Stanley Says

MT Newswires Live
02/27

DigitalOcean's (DOCN) Q4 results and guidance for both 2026 and 2027 topped investor expectations, Morgan Stanley said in a Wednesday note.

Analysts said that DigitalOcean's previous strategic initiatives are driving its results, with large customer cohorts growing fastest, experiencing the strongest expansion and showing the lowest churn.

Morgan Stanley said that investors had previously not considered DigitalOcean's 2027 targets as achievable, but the company has since earned credibility, and its materially higher targets are now viewed as conservative.

The analysts also said that the company's strategic initiatives are starting to take hold, which is set to benefit its Agentic Inference Cloud platform.

Analysts retained an overweight rating on the stock and raised its price target to $75 from $56.

Price: 56.73, Change: -2.55, Percent Change: -4.29

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