William Blair analyst Jason Ader has maintained their bullish stance on DOCN stock, giving a Buy rating on April 21.
Jason Ader has given his Buy rating due to a combination of factors that highlight DigitalOcean Holdings’ strong performance and promising outlook. The company reported a solid first-quarter performance, exceeding revenue and earnings expectations, with revenue growth of 14% and non-GAAP EPS surpassing consensus by $0.11. This was largely driven by improvements in customer expansion and acquisition, as well as effective cost optimization strategies.
Moreover, DigitalOcean’s management remains optimistic about future growth, maintaining their full-year guidance despite macroeconomic uncertainties. The company’s strategy to focus on larger customers, particularly those with annual recurring revenue over $100,000, has shown success, with this segment experiencing 41% revenue growth. These factors, combined with strong demand signals from digital native enterprises, underpin Ader’s confidence in the company’s ability to achieve its financial targets and justify the Buy rating.
In another report released on April 21, Barclays also maintained a Buy rating on the stock with a $38.00 price target.