Update shared on 25 Nov 2025
Fair value Increased 20%Analysts have raised their price target for DigitalOcean Holdings from $44.45 to $53.33. They cite updated revenue growth forecasts and a reduced discount rate as key drivers of their more optimistic outlook.
What's in the News
- Betaville blog reported a potential takeover bid involving DigitalOcean, according to contacts cited by The Fly (Periodicals).
- DigitalOcean provided new earnings guidance, anticipating Q4 revenue of $237 to $238 million and full-year revenue of $896 to $897 million.
- DigitalOcean and fal expanded their strategic partnership to offer multimodal AI models for image and audio generation to DigitalOcean users, enhancing the Gradient AI Platform.
- Laravel, in partnership with DigitalOcean, announced the launch of Laravel VPS, streamlining server creation and management for over 1 million developers.
- DigitalOcean introduced Single Sign-On support, enabling streamlined authentication and user management for digital native businesses.
Valuation Changes
- Consensus Analyst Price Target: Increased from $44.45 to $53.33. This reflects higher growth expectations.
- Discount Rate: Decreased slightly from 10.42% to 10.16%, which indicates lower perceived risk.
- Revenue Growth: Projected to rise from 15.9% to 18.6%. This signals an improved outlook for top-line expansion.
- Net Profit Margin: Decreased from 12.3% to 7.9%, suggesting a revised view on future profitability.
- Future P/E: Increased from 32.66x to 55.75x, implying a higher valuation multiple on expected earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.