DigitalOcean price target lowered to $43 from $45 at Needham

Needham analyst Mike Cikos lowered the firm’s price target on DigitalOcean to $43 from $45 but keeps a Buy rating on the shares. The consensus 2023 revenue forecast of $705.6M implies 13% ARR growth to $746.8M, and the Street assumption assumes larger Net New ARR additions in the back-half of the year, where the firm is less certain of growth initiatives due to the uncertain economy, the analyst tells investors in a research note. Longer term, Needham remains positive on DigitalOcean’s competitive moat and leading position in serving Developers, Start-Ups and SMBs.