William Blair analyst Jake Roberge has maintained their neutral stance on DOCU stock, giving a Hold rating today.
Jake Roberge has given his Hold rating due to a combination of factors including DocuSign’s strong fourth-quarter performance and the promising momentum in its Identity and Access Management (IAM) segment. The company reported subscription revenue growth that exceeded expectations and saw a notable increase in billings growth, which indicates a positive trajectory. However, while the IAM solution is gaining traction among enterprise customers, it is still in the early stages, and significant monetization is expected to occur in the commercial segment by fiscal 2026.
Despite these positive developments, DocuSign’s revenue growth projections for fiscal 2026 are slightly below consensus estimates, with anticipated total revenue and subscription revenue growth of 5% and 6%, respectively. Although there is an expected acceleration in billing growth, which could enhance revenue growth in fiscal 2027, the current macroeconomic environment remains stable with some international headwinds. These factors contribute to the Hold rating, as the company is executing well but faces challenges in meeting higher growth expectations.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $97.00 price target.
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