William Blair analyst James Breen initiated coverage on DigitalOcean Holdings Inc. (DOCN) with an Outperform rating and no price target.
DigitalOcean is a comprehensive cloud platform designed to simplify cloud infrastructure for developers, start-ups, and small to midsize businesses, Breen tells investors in a research note.
The analyst believes the company has a “differentiated platform that appeals to this underserved segment of the market.”
It has a “large and growing” addressable market, which is expected to more than double over the next four years to $116 billion, notes Breen.
He believes DigitalOcean’s shares are undervalued at current levels.
The company’s stock gained 8.52 percent over the last week.
DOCN shares closed higher by 8.68 percent at $124.21 on Friday.
By Anusuya Lahiri
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