JMP Securities reiterates Market Outperform rating on DocuSign stock

Investing.com - JMP Securities has reiterated a Market Outperform rating on DocuSign Inc. (NASDAQ:DOCU), currently trading at $73.94 with a market cap of $15 billion, with a price target of $124.00, according to a research note published Tuesday. InvestingPro data shows the company maintains impressive gross profit margins of 79% and holds more cash than debt on its balance sheet.

The firm’s analysis comes amid what it describes as a "string of SaaS acquisitions in 2025," which JMP believes provides positive implications for several companies it considers attractive acquisition candidates.

DocuSign is included in this group of potential acquisition targets alongside other software companies such as Blackline (NYSE:BL), C3.ai (NYSE:AI), Domo (NASDAQ:DOMO), Sprinklr (NYSE:CXM), Teradata (NYSE:TDC), and Vertex (NASDAQ:VERX).

JMP maintains Market Outperform ratings on most of these companies, with price targets ranging from $17 to $124, while Teradata carries a Market Perform rating.

The firm’s maintained $124 price target for DocuSign represents potential upside from the stock’s current trading levels, as the e-signature company continues to operate in the competitive enterprise software market.

In other recent news, Docusign Inc. reported its first-quarter results, revealing a 7.6% year-over-year increase in total revenue to $764 million, slightly surpassing consensus expectations. Despite this, the company faced challenges with its billings, which grew by only 4% year-over-year to $740 million, falling short of the $746 million midpoint guidance. Analysts from RBC Capital, Piper Sandler, Needham, BofA Securities, and JPMorgan have all reacted to these developments. RBC Capital maintained a Sector Perform rating, while Piper Sandler and BofA Securities both lowered their price targets to $85, citing the billings miss. JPMorgan also adjusted its price target to $77, maintaining a Neutral rating. Needham kept a Hold rating, noting the missed billings guidance despite satisfactory revenue and earnings per share. Analysts attributed the shortfall in billings to changes in Docusign’s go-to-market strategy and fewer early renewals. Despite the challenges, Docusign’s net revenue retention remained stable at 101%.

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