UBS analyst Karl Keirstead has maintained their neutral stance on DOCU stock, giving a Hold rating today.
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Karl Keirstead has given his Hold rating due to a combination of factors influencing DocuSign’s financial outlook. The company experienced a notable improvement in its billings performance this quarter, primarily driven by stronger renewal activity, which was a positive shift from the previous quarter’s challenges. However, the quarterly volatility in billings remains a concern, prompting DocuSign to consider adopting a new metric for future evaluations.
Despite the positive developments, there are still underlying concerns. While DocuSign’s core e-signature business shows strong demand, the company has yet to establish a significant secondary growth avenue, as seen with the underperformance of its CLM segment and the nascent stage of its IAM AI initiatives. Furthermore, when compared to peers like Salesforce, DocuSign’s financial metrics suggest a reasonable valuation, but not one that warrants a higher rating. These factors collectively contribute to the decision to maintain a Hold rating, with a slight increase in the price target reflecting the current financial trajectory.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $102.00 price target.