Cloud computing platform DigitalOcean is at an attractive entry point, according to Goldman Sachs.
Analyst Gabriela Borges upgraded DigitalOcean to buy from sell and maintained her price target of $33, which implies the stock could jump 38.4% over the next 12 months.
Borges cited the stock's significant underperformance — DigitalOcean is up nearly 6% this year, while the Nasdaq Composite has gained 30% — as an opportunity for investors.
The underperformance has likely been driven by a cyclical normalization in cloud optimization spending, according to Borges.
Borges noted overhang from DigitalOcean's ongoing search for a new CEO since late August.
Persons:
Goldman Sachs, Gabriela Borges, DigitalOcean, Borges, DigitalOcean's, — CNBC's Michael Bloom
Organizations:
Nasdaq