DigitalOcean upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Josh Baer upgraded DigitalOcean (DOCN) to Overweight from Equal Weight with a price target of $41, up from $40. DigitalOcean is delivering enhanced capabilities to better serve larger customers, the analyst tells investors in a research note. The firm says “sliding upmarket” with existing customers should yield faster growth and stronger unit economics. The stock does not price in this dynamic, assumes no improvement to the core business, and gives little to no credit to DigitalOcean’s machine learning optionality, contends Morgan Stanley.