DigitalOcean (DOCN) is expected to post strong Q2 results and could outperform its full-year guidance, Oppenheimer said in a note Tuesday.
The company is scheduled to report its Q2 results on Aug. 4.
The analysts said that following DigitalOcean's pre-announcement on July 7, expectations for the quarter have largely been de-risked. The company now expects 29% year-over-year revenue growth, up from its previous guidance of 24% to 25%, and said its remaining performance obligations increased more than 10-fold to over $800 million.
Even so, the analysts said they believe there is still room for further upside in the company's full-results. They expect DigitalOcean to deliver at least $30% revenue growth in 2026 and 60% growth in 2027, supported by stronger-than-expected revenue and megawatt capacity.
"This excludes future price hikes. More bullish investor expectations appear to be similarly positioned," the analysts added.
Oppenheimer reiterated its outperform rating and $190 price target on DigitalOcean. Shares of the company were down 8% in the session.
Price: $110.30, Change: $-9.90, Percent Change: -8.24%