DigitalOcean's $1B AI Signal Implies Strong Inflection (Rating Upgrade) (NYSE:DOCN)
DigitalOcean has been upgraded to a buy rating with a $56.4 price target due to its successful pivot to AI-native, large-spending enterprise clients. The company's revenue growth is accelerating, with ARR up 16% to $919M and projected sales of $1.06B next year, while maintaining stable gross margins and healthy adj. EBITDA margins. Despite some leverage risk, the strategic shift to AI is crucial for continued financial health.
https://seekingalpha.com/article/4850983-digital-oceans-1b-ai-signal-implies-strong-inflection-rating-upgrade