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On Monday, JMP analysts reaffirmed their positive stance on DocuSign Inc . (NASDAQ:DOCU), maintaining a Market Outperform rating and a $124.00 price target. The firm’s analysts believe DocuSign presents a strong opportunity for long-term capital appreciation due to several key factors. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $70 to $124.
Firstly, DocuSign is recognized for its leading position in the e-signature sector, boasting an impressive customer base of 1.7 million and maintaining robust gross profit margins of 79.25%. In addition to its established presence, the company is also seen as having a significant growth opportunity with its Intelligent Agreement Management (IAM) solutions. Although IAM currently represents a small single-digit percentage of DocuSign’s total subscription business, it is forecasted to climb into double-digits by the end of fiscal year 2026 as demand outpaces expectations. InvestingPro analysis reveals the company achieved 7.78% revenue growth in the last twelve months, with over 10 additional key insights available to subscribers.
The company’s addressable market is substantial, estimated at $50 billion, evenly split between e-signature and contract lifecycle management. This expansive market provides ample room for DocuSign to grow its business. With a current market capitalization of $15.27 billion and an overall financial health score of GREAT from InvestingPro, the company appears well-positioned to capture this opportunity. Discover more detailed insights in DocuSign’s comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
JMP analysts also noted improvements in the core business metrics, highlighting an increase in the Net Revenue Retention (NRR) rate to 101% in the fourth fiscal quarter, up from 100% in the previous quarter. This marks a recovery from the low of 98% seen one year prior.
The leadership team at DocuSign, including COO Allan Thygesen, CFO Blake Grayson, CRO Paula Hansen, and Head of Investor Relations Matt Sonefeldt, were commended for their thoughtful stewardship of the company, which analysts believe will contribute to the company’s continued success.
In other recent news, Docusign Inc. has been the subject of several analyst evaluations following its latest financial disclosures. UBS analysts, led by Karl Keirstead, have lowered their price target for Docusign to $85, maintaining a Neutral rating. This adjustment reflects current market conditions and follows Docusign’s unveiling of new AI and Identity Access Management (IAM) products. Meanwhile, JMP Securities has maintained a Market Outperform rating with a price target of $124, citing confidence in Docusign’s market leadership and growth potential in IAM solutions.
William Blair analysts have retained a Market Perform rating, noting that Docusign’s fourth-quarter results exceeded expectations, with notable growth in subscription revenue and the IAM platform. Wells Fargo (NYSE:WFC) analyst Michael Turrin reiterated an Underweight rating with a $73 price target, highlighting Docusign’s fiscal year 2026 guidance, which includes projected revenue growth of 5-6% and billings growth of 6-7%. Docusign’s guidance also accounts for foreign exchange impacts and other financial headwinds, suggesting a cautious outlook. Despite these varied perspectives, analysts generally acknowledge Docusign’s strategic focus on IAM as a potential growth driver.
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