Analyst William Power from Robert W. Baird maintained a Hold rating on DocuSign (DOCU – Research Report) and keeping the price target at $93.00.
William Power has given his Hold rating due to a combination of factors related to DocuSign’s current market position and future growth prospects. The company is showing promising early traction in its Intelligent Agreement Management (IAM) segment, which is expected to contribute more significantly to subscription revenue in the coming years. However, IAM is still in its early stages, and while it offers potential for revenue uplift through higher pricing, the exact impact remains unquantified at this time.
Additionally, while DocuSign has demonstrated improved billings growth and net revenue retention, the macroeconomic environment and limited federal exposure have not yet significantly influenced usage patterns. The company’s valuation, trading at a multiple lower than the broader SaaS group, reflects these uncertainties. Despite healthy margins and potential for future revenue growth, these factors contribute to the decision to maintain a Hold rating, indicating a cautious but optimistic outlook.
Power covers the Technology sector, focusing on stocks such as DocuSign, Zoom Video Communications, and Dynatrace. According to TipRanks, Power has an average return of 15.3% and a 53.77% success rate on recommended stocks.
In another report released on March 14, Piper Sandler also maintained a Hold rating on the stock with a $90.00 price target.
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