Although Docusign Inc DOCU reported healthy first-quarter results, its full-year billings guidance was disappointing, reflecting “choppy execution” according to BofA Securities.
The DocuSign Analyst: Brad Sills downgraded the rating for DocuSign from Buy to Neutral, while reducing the price target from $120 to $72.
The DocuSign Thesis: The Buy rating was based on valuation and expectations of improving execution, resulting in sustained mid-teens billings growth in fiscal FY23, Sills said in the downgrade note.
“We are three quarters into the effort to retool the sales organization and the efforts remains a work in progress. Commentary suggests an additional multi quarter effort from here,” the analyst wrote.
“Guidance for FY23 rev growth of 18%, implies mid-teens growth in H2, which is inconsistent with billings guidance, implying mid/high single digit billings growth in H2. This suggests perhaps further downside to already reset FY23 rev estimates,” he added.
DOCU Price Action: Shares of DocuSign had declined by 22.85% to $68.27 at the time of publication Friday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.