DocuSign stock price target raised to $90 from $85 at Piper Sandler

Investing.com - Piper Sandler raised its price target on DocuSign Inc. (NASDAQ:DOCU) to $90 from $85 while maintaining a Neutral rating following the company’s second-quarter results. According to InvestingPro data, the stock currently trades at a P/E ratio of 13.95, with analysts setting price targets ranging from $76 to $124.

The research firm cited DocuSign’s strong performance with beats across both top and bottom lines, driven by recent platform innovations and go-to-market changes implemented in the first quarter.

These strategic adjustments resulted in success with both commercial and enterprise customers across the eSignature portfolio, with international revenue growth accelerating to 13% year-over-year compared to 10% in the previous quarter.

DocuSign also showed improved net revenue retention trends and further traction in its Identity and Access Management (IAM) offerings, prompting the company to raise its full-year guidance for both billings and revenue.

Despite these positive developments, Piper Sandler remains sidelined on the stock, indicating it would need to see more quarters of consistent execution before taking a more constructive stance on the shares.

In other recent news, Docusign reported impressive second-quarter results, surpassing expectations across various financial metrics. The company achieved revenue of $801 million, a 9% increase, and earnings per share of $0.92, both exceeding analyst estimates. Billings reached $818 million, marking a 13% growth and outperforming projections. RBC Capital noted that Docusign’s net revenue retention rate improved to 102% from the previous quarter’s 101%. In response to these results, several firms raised their price targets for Docusign. BofA Securities increased its target from $85 to $102, citing improved execution in the eSignature business and momentum in the Identity and Access Management sector. RBC Capital adjusted its target from $90 to $95, and Evercore ISI raised its target from $90 to $92, following the strong quarterly performance. Meanwhile, JPMorgan raised its price target to $80, acknowledging Docusign’s leadership in the contract-lifecycle management market. Needham maintained a Hold rating, recognizing improvements in execution under CEO Allan Thygesen’s leadership.

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