Morgan Stanley analyst Josh Baer lowered the firm’s price target on DigitalOcean to $28 from $41 and keeps an Underweight rating on the shares. Q4 revenue guidance is implying "only" 12% year-over-year organic growth, ex-pricing, and the FY23 growth guidance is implying "only" about 17% year-over-year growth after adjusting for M&A and pricing, said Baer, who adds that he sees risk to the FY23 outlook given his assessment of declining net new ARR ex-pricing. He is modeling below the company’s 30%-plus FY23 guidance and "significantly below" the reiterated greater than $1B organic target in FY24, as he now estimates $933M in FY24 revenue, Baer added.
Published first on TheFly
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Read More on DOCN:
- DigitalOcean downgraded to Neutral from Overweight at JPMorgan
- DigitalOcean price target lowered to $37 from $45 at Barclays
- DigitalOcean price target lowered to $40 from $65 at Oppenheimer
- DigitalOcean sees Q4 adjusted EPS 18c-19c, consensus 26c
- DigitalOcean sees FY22 adjusted EPS 79c-80c, consensus 75c
