DigitalOcean Poised for Stable Core Growth, UBS Says

MT Newswires Live
Oct 07, 2025

DigitalOcean Holdings' (DOCN) core or non-artificial intelligence business is poised for stable growth, UBS Securities said in a note Monday.

UBS said the company's "win rates generally sounded stable" and core cloud workload growth appeared to be mainly driven by spend increases.

The brokerage said it expects core cloud growth of 10% to 12% to drive its 14% to 15% revenue growth estimate for the next several years.

The firm said its checks leaned positive on the company's newer AI products such as the Gradient AI platform, but noted that "it still seems too early for these to be needle movers."

UBS resumed coverage of the company with a neutral rating and $40 price target.

DigitalOcean shares were up 1.6% in recent Tuesday trading.

Price: 38.80, Change: +0.41, Percent Change: +1.08

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