DocuSign (DOCU – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Josh Baer from Morgan Stanley maintained a Hold rating on the stock and has a $97.00 price target.
Josh Baer has given his Hold rating due to a combination of factors that reflect both positive and negative aspects of DocuSign’s recent performance and future outlook. On the positive side, DocuSign reported a significant upside in Q4 billings growth, surpassing expectations with an 11% year-over-year increase, which was well above the guidance of 5%. Additionally, the FY26 billing guidance of 7% year-over-year growth (8% in constant currency) was initiated ahead of consensus estimates, suggesting a potential path to double-digit growth.
However, despite these positive indicators, there are concerns that temper the overall outlook. The FY26 revenue and operating margins were guided below expectations, which has led to a downward revision of estimates. Furthermore, while the Identity and Access Management (IAM) segment is showing promise with better-than-expected progress, it is still in the early stages of contributing significantly to the overall revenue. These mixed signals, along with the company’s ongoing investments in R&D that are affecting operating margins, have contributed to the Hold rating as the market awaits further evidence of sustained growth and improved financial performance.