DigitalOcean upgraded to Outperform at Oppenheimer on AI tailwinds

As previously reported, Oppenheimer upgraded DigitalOcean to Outperform from Perform with a $37 price target. AI demand is “clearly strong” and enterprise adoption is set to surge as the market moves past “the network grooming phase of cloud services,” says the analyst, who thinks growth is set to accelerate and is increasing outer-year estimates. AI is also helping DigitalOcean sell its legacy suite of products to new customers, and its Paperspace acquisition is creating synergistic opportunities, the analyst added.