Needham analyst Scott Berg has maintained their neutral stance on DOCU stock, giving a Hold rating on December 11.
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Scott Berg’s rating is based on the recent developments shared during a discussion with DocuSign’s management team. He highlighted the transition from billings to annual recurring revenue (ARR) as a key metric, which helps to mitigate inconsistencies related to early renewals and deal timing, providing a clearer picture of long-term performance.
Additionally, Scott Berg recognized a stable demand environment and promising adoption of DocuSign’s IAM offerings among their significant direct sales customer base of 276,000. While concerns about OpenAI’s impact previously caused some doubt, these now appear overstated, with the company’s potential to benefit from AI trends becoming evident. These factors collectively support the Hold rating, reflecting a balanced view of the company’s opportunities and risks.
According to TipRanks, Berg is an analyst with an average return of -2.1% and a 41.55% success rate. Berg covers the Technology sector, focusing on stocks such as Zeta Global Holdings Corp, Freshworks, and Braze.