Why BofA Is Bullish On DocuSign Stock
DocuSign Inc (NASDAQ:DOCU) is an industry-leading brand in the contract lifecycle management and eSignature market, and the market is an underappreciated one, according to BofA Securities.
The DocuSign Analyst: Brad Sills reinstated coverage of DocuSign with a Buy rating and $250 price target.
The DocuSign Takeaways: “DocuSign screens well in our 4M framework for software investing,” Sills said in a Thursday note.
Contracting workflow and eSignatures represent a combined opportunity of $24 billion, the analyst said.
DocuSign's competitive moat stems from a large installed base of over 822,000 customers, a distribution channel of 3,000-plus sales and marketing personnel and its eSignature and agreement software, he said.
Sills said he expects DocuSign to “continue benefitting from a strong adoption cycle, stemming from demand for a cloud based solution which reduces contract execution cycles time from weeks to less than a day."
Given the large market DocuSign addresses and its competitive positioning, “we believe a long runway exists for 25%+ revenue growth,” the analyst said.
DOCU Price Action: Shares of DocuSign were trading 3.27% higher to $212.44 at the time of publication Thursday.
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