DocuSign For Sale? Buyers May Target eSignature Company As Stock Declines

Zinger Key Points
  • DocuSign stock has lost around 50% since early May.
  • Some growth challenges still remain heading into the rest of FY23, analyst says.

DocuSign Inc.’s DOCU stock has limited downside as the negative catalysts have already played out, according to Wedbush.

The Analyst: Daniel Ives upgraded the rating for DocuSign from Underperform to Neutral, while maintaining the price target at $55.

The Thesis: The stock has lost around 50% since early May, and the San Francisco-based company could become an acquisition target by a financial or strategic player if the stock continues to decline, Ives said.

Check Out Other Analyst Stock Ratings.

“While the market for high growth tech has been brutal, DOCU shares have been under considerable pressure as the WFH growth hangover coupled by a softer macro/execution issues have been the perfect storm for the stock,” the analyst wrote.

“That said, we believe execution on the CLM deal front have generally stabilized with numbers now attainable for FY23/FY24,” he added.

See Also: Sell DocuSign, Buy Box: Digital Document Landscape Is 'Competitive,' Analyst Says

“In our opinion, the management team has gotten its arms around the business and is clearly adjusting to the new sales environment although some growth challenges still remain heading into the rest of FY23."

DOCU Price Action: Shares of DocuSign had risen by 0.22% to $44.64 at the time of writing.

See Also: Analysts Divided Over DocuSign Downsizing Plans

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Posted In: Analyst ColorM&ANewsUpgradesAnalyst RatingsDaniel IvesWedbush
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