DigitalOcean Is Underappreciated, Goldman Sachs Says In Bullish Take On Cloud Stock
Portfolio Pulse from Priya Nigam
Goldman Sachs has upgraded its rating for DigitalOcean Holdings Inc (NYSE:DOCN) from Sell to Buy, maintaining a price target of $33. The stock has underperformed this year due to a normalization in cloud optimization spending and management transition. However, Goldman Sachs believes that as the macro environment stabilizes, the structural improvements made by DigitalOcean will drive better revenue growth and continued FCF margin expansion.
November 07, 2023 | 5:41 pm
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Goldman Sachs has upgraded its rating for DigitalOcean from Sell to Buy, which could potentially lead to an increase in the stock's price. The firm believes that the company's structural improvements will drive better revenue growth and continued FCF margin expansion.
The upgrade from Goldman Sachs is a positive signal for DigitalOcean. The firm's belief in the company's potential for better revenue growth and FCF margin expansion indicates a positive outlook for the company's performance, which could lead to an increase in the stock's price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100