Citi ups DocuSign target, opens pair trade with Zoom

Citi analyst Tyler Radke raised the firm’s price target on DocuSign (DOCU) to $72 from $59 and keeps a Buy rating on the shares. The company’s Q3 results offered encouraging signs of growth stabilization and improving margins, Radke tells investors in a research note. The in-line Q4 guidance and fiscal 2024 outlook below Street estimates "suggests lower confidence but de-risks numbers," says the analyst. Radke opened a work-from-home pair-trade of long DocuSign, short Zoom Video (ZM) as he sees the former outperforming with stronger underlying growth and leading indicators, lower competitive risk, and "de-risked" 2024 numbers.