DocuSign Is Performing Better Than Expected; Wedbush Lifts Price Target To $240

First-hand field checks suggest Docusign Inc DOCU is performing better than expected amid the COVID-19 pandemic, according to Wedbush.

The Docusign Analyst: Daniel Ives maintains an Outperform rating on Docusign's stock with a price target lifted from $165 to $240.

The Docusign Thesis: Wedbush's conversations and checks with Docusign customers and partners in the field reinforces the company's status among businesses of all sizes as the dominant go-to-vendor for e-signature solutions, Ives wrote in a note. Encouragingly, DocuSign is seeing upselling momentum as it offers solutions to a suite of "virtual pain points."

While M&A and other deals have been put on hold or canceled amid the pandemic, DocuSign is still prioritized among IT executives as its other products and services are needed, such as the DocuSign Agreement Cloud and CLM offerings from the SpringCM acquisition.

DocuSign's streamlined software-based cloud platform and its brand awareness is "unparalleled in the market" as it succeeded in helping companies of all shapes and sizes that have been "caught flat footed," the analyst wrote. But the rapid shift to a work-from-home merely emphasizes DocuSign's importance as part of a "new reality" for CIOs.

DocuSign is well-positioned in "the right place at the right time" to address the work-from-home environment and investors should have a higher conviction on the stock despite recent momentum.

DOCU Price Action: Shares of DocuSign hit a new 52-week high of $213.63 Thursday morning and was up 2.3% at time of publication.

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