Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Citizens has reiterated its Market Outperform rating and $124.00 price target on DocuSign Inc. (NASDAQ:DOCU) following investor meetings with the company’s Head of Investor Relations in San Francisco on Wednesday, October 8. Currently trading at $71.35, InvestingPro analysis suggests the stock is undervalued, with 12 analysts recently revising their earnings estimates upward.
The firm highlighted that DocuSign stock has fallen 21% year to date, compared to increases of 15% for the S&P 500 and 14% for the Russell 3000 during the same period.
Citizens views DocuSign as an "excellent opportunity for capital appreciation" due to its dominant position in the e-signature market with approximately 1.7 million customers, strong brand recognition, and high customer satisfaction.
The firm noted that DocuSign addresses a large $50 billion total addressable market, split evenly between e-signature ($25 billion) and contract lifecycle management ($25 billion).
Citizens also pointed to DocuSign’s Identity and Access Management (IAM) product cycle as a compelling long-term opportunity, which is on track to represent a double-digit percentage of the company’s subscription business by year-end.
In other recent news, DocuSign announced that its Intelligent Agreement Management platform has received FedRAMP Moderate authorization. This development allows federal agencies to use DocuSign’s digital agreement solutions while adhering to government security standards. Additionally, DocuSign, in collaboration with CLEAR, launched a new identity verification solution in the U.S., integrating biometric technology to enhance security in digital agreements. This move addresses increasing concerns about identity fraud, particularly with the rise of generative AI technologies.
In another development, Piper Sandler raised its price target for DocuSign to $90, up from $85, maintaining a Neutral rating. The firm noted DocuSign’s strong second-quarter performance, which exceeded expectations in both earnings and revenue, attributed to platform innovations and strategic changes in its go-to-market approach. Meanwhile, Citizens reiterated a Market Outperform rating for DocuSign, despite recent concerns over OpenAI’s launch of DocuGPT, which impacted the stock.
Elsewhere in the tech sector, HubSpot shares fell 10% following OpenAI’s announcement of internal software applications that could compete with existing SaaS offerings. OpenAI’s new tools span various software categories and are set to be showcased at an upcoming event.
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