Analysts Initiate Coverage Of DocuSign Following IPO Quiet Period

The quiet period following the IPO Docusign Inc DOCU has ended, and several Wall Street analysts have weighed in on the stock. Here’s a rundown of what they’ve had to say.

Voices From The Street

Citi analyst Walter Prichard said DocuSign is a potential SaaS market leader.

“We see large opportunity to offer online transaction services in a broad variety of vertical markets, with DocuSign leading this early opportunity,” Prichard wrote.

JPMorgan analyst Sterling Auty said the DocuSign IPO is coinciding with the early stages of a major growth opportunity in electronic signature technology.

“The use of electronic signatures has been around for years, but it is finally reaching a material size where we think broader adoption will accelerate,” Auty wrote.

Deutsche Bank analyst Karl Keirstead said much of DocuSign’s long-term growth potential is already priced into the stock.

“DocuSign cracked open the whole cloud-hosted e-signature software market and we are empathetic to the bull case that DocuSign is facing a large and still-untapped opportunity and that Street estimates have a strong upward bias,” Kierstead wrote.

JMP analyst Patrick Walravens said DocuSign is a clear leader in its market, it has strong brand value and it has a healthy financial profile.

“We recently spoke with nine of DocuSign’s customers, which generally provided positive feedback on the platform’s functionality and ease of use and all suggested their spending on DocuSign would increase going forward,” Walravens wrote.

Morgan Stanley analyst Stan Zlotsky said DicuSign in a strong brand, but the stock is appropriately priced.

“Only 2% penetrated in a $25B+ TAM, with strong competitive positioning, we see plenty of runway for growth,” Zlotsky wrote.

Ratings And Targets

• Citi has a Buy rating and $59 target.
• JPMorgan has an Overweight rating.
• Deutsche Bank has a Hold rating and $45 target.
• JMP has an Outperform rating and $52 target.
• Morgan Stanley has an Equal-Weight rating and $42 target.

The stock traded around $43.59 at time of publication.

Related Links:

DocuSign Chairman Explains How The Company Became An Integral Part Of The Tech Industry

DocuSign Is The E-Signature Standard, But Shares Are Fairly Valued, Morgan Stanley Says

Photo courtesy of DocuSign.