Why This DocuSign Analyst Says There's Downside Ahead

DocuSign Inc DOCU has an elevated risk profile given the CEO transition, execution challenges, high employee turnover and a deteriorating macro environment, according to Piper Sandler.

The DocuSign Analyst: Rob Owens downgraded DocuSign from Neutral to Underweight and lowering the price target from $65 to $54.

The DocuSign Tajeaways: The company’s revenues are unlikely to reacceleration in the near-term, Owens said in the downgrade note.

“Recent commentary from DOCU has attributed softening growth in part to the weaker macro backdrop and post-COVID demand normalization,” the analyst wrote.

Commentary from competitors like Adobe Inc ADBE “suggests that these dynamics are not felt equally,” he said. 

Check out other analyst stock ratings.

“While we acknowledge an approximately 80% drop in shares from peak levels, we remain cautious and believe the primary upside driver would come only from a potential takeout,” Owens further mentioned.

DOCU Price Action: Shares of DocuSign were trading down slightly at $67.64 midday Thursday.

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