Analysts at Oppenheimer increased their price target on DigitalOcean Holdings, Inc. (NYSE:DOCN) to $100 from $70 on accelerating key metrics, mentioning the following main points:

(1) Accelerating metrics such as retention and ARPU,

(2) valuation and capex spending trends versus competitors,

(3) short-term catalyst of the lock-up expiration,

(4) competitive moat around the SMB- focused niche that DOCN has carved out,

(5) ability for the company to balance growth and profitability over the long-term.

The brokerage increased its FY22/FY23 revenue/EBITDA estimates and believes these are conservative and revenue growth could accelerate to over 40% within 2–3 years.