UPDATE: JPMorgan Starts DigitalOcean (DOCN) at Overweight
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JPMorgan analyst Mark Murphy initiates coverage on DigitalOcean (NYSE: DOCN) with a Overweight rating and a price target of $50.00.
The analyst comments "DigitalOcean is a leading public cloud provider offering a solution designed specifically for SMBs, early-stage start-ups and individual developers. Compared to the large well-known public cloud players, the DigitalOcean platform differentiates on the principles of simplicity, predictable lower pricing, broad community and strong customer support, while its growing brand awareness as well as its strong ongoing investments in its security posture make it stand out relative to smaller competitors, enabling it to carve out a leadership position in its market segment. Its solid product market fit has driven its broad based global adoption across its over 570,000 customers across 185 countries and has fueled its steady growth over the last few years. As we look into the future, we expect the company to execute toward its strategy to accelerate growth while expanding operating and FCF margins, as it captures share and looks to fortify a leadership position in its market segment. Our Dec 2021 price target of $50 is based on ~11x EV/CY22E revenue."
Shares of DigitalOcean closed at $44.87 yesterday.
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