DocuSign: Strong Fundamentals and Growing IAM Demand Justify Buy Rating Despite Billing Challenges

William Blair analyst Jake Roberge has maintained their bullish stance on DOCU stock, giving a Buy rating today.

Jake Roberge has given his Buy rating due to a combination of factors, despite the recent disappointing results in DocuSign’s billings growth. The company’s billings were impacted by lower-than-expected early renewals, attributed to recent changes in its go-to-market strategy. However, the underlying business fundamentals remain robust, with the direct business consumption reaching its highest level since fiscal 2022.
Furthermore, DocuSign’s new IAM suite is showing strong demand, with revenue and deal volume exceeding expectations. The company has surpassed 10,000 direct IAM customers and continues to see growth in international markets. Despite the challenges, the overall demand for DocuSign’s services remains healthy, leading Roberge to recommend buying the stock on its current weakness.

Roberge covers the Technology sector, focusing on stocks such as DocuSign, BlackLine, and Vertex. According to TipRanks, Roberge has an average return of -4.7% and a 42.47% success rate on recommended stocks.

In another report released today, Jefferies also maintained a Buy rating on the stock with a $105.00 price target.