Needham analyst Scott Berg has maintained their neutral stance on DOCU stock, giving a Hold rating yesterday.
Scott Berg’s rating is based on the observation that while DocuSign is making significant strides in its Identity and Access Management (IAM) solutions, the company is still heavily reliant on its e-signature services. The recent introduction of the IAM platform, which has already attracted 10,000 customers primarily in the small and medium-sized business sector, is a promising development. However, the transition to this new focus is still in its early stages, and the company needs to further expand its customer base and capabilities in this area.
Additionally, DocuSign’s efforts to innovate within the IAM space, such as the introduction of an AI agent and enhanced workflow management solutions, are commendable. Yet, these advancements are still being integrated and scaled. As such, while there is potential for growth, the current state of transition and the need for further development and customer acquisition justify a Hold rating at this time.
Berg covers the Technology sector, focusing on stocks such as Five9, Salesforce, and Workday. According to TipRanks, Berg has an average return of -9.6% and a 34.20% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $90.00 price target.