Why This DocuSign Analyst Is Bullish

A Wedbush Securities analyst is bullish on shares of DocuSign, Inc DOCU. Here's what investors need to know. 

The DocuSign Analyst: Daniel Ives maintained an Outperform rating on shares of DocuSign and raised the price target from $260 to $290.

The DocuSign Takeaways: DocuSign addresses a key issue that many organizations face in trying to accelerate moves to digital platforms, Ives said.

IT decision makers at many enterprises are prioritizing the use of DocuSign’s solution set and e-signature platform as a way to manage contracts and paperwork with remote workers, the analyst said. 

Going forward, as work from home continues to become a more common choice for employees, DocuSign’s ability to “further penetrate existing as well as new customers” has largely increased, he said. 

This penetration stems from DocuSign’s software based cloud platform’s ability to streamline traditional contracting processes for companies looking to cut down on the time involved with this contracting and typical highly redundant costs, the analyst said.

Additionally, DocuSign’s Agreement Cloud and its contract lifecycle management offering SpringCM continue to expand the company’s software offerings throughout entire deal processes — a major differentiator in this environment, he said. 

In a broad view of the company, Ives said its “plug and play features, ease of use, brand awareness, high technical expertise, and network effect (APIs)” are key drivers for DocuSign’s success in building its strong market presence.

DOCU Price Action: DocuSign shares gained 5.3% Friday, closing at $274.43.