Why DocuSign Stock Is Sliding Today

DocuSign Inc DOCU shares are trading lower Monday following a downgrade from Morgan Stanley. 

Morgan Stanley analyst Josh Baer downgraded DocuSign from Equal-Weight to Underweight and lowered the price target from $73 to $47, citing several near-term headwinds. 

The Morgan Stanley analyst anticipates continued execution problems stemming from post-COVID demand normalization, leadership changes and an employee restructuring. All of these challenges are likely to be exacerbated by the challenging macro environment, Baer said.

Even after DocuSign works its way through the near-term headwinds, the analyst expects increasing competition and commoditization of core digital signature capabilities to lead to pricing pressures. As a result, Baer anticipates a "low double-digit growth profile in the coming years."

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DOCU Price Action: DocuSign has a 52-week high of $157.37 and a 52-week low of $51.12.

The stock was down 3.2% at $51.76 at time of publication, according to Benzinga Pro.

Photo: courtesy of DocuSign.