TotalEnergies to become largest shareholder in U.K. oil and gas venture
Investing.com - Needham has reiterated its Hold rating on Docusign Inc. (NASDAQ:DOCU), a $15.4 billion market cap company, following its second-quarter results. The document management firm, which maintains impressive gross profit margins of nearly 80%, demonstrated continued improvement under CEO Allan Thygesen’s leadership. According to InvestingPro analysis, the company maintains a "GREAT" overall financial health score.
The research firm noted that Docusign’s performance shows better execution compared to when Thygesen took the helm in Fall 2022, with customer downsells continuing to abate and the company’s new Identity and Access Management (IAM) solution performing better than expected. This improved execution is reflected in the company’s 8.3% year-over-year revenue growth.
Needham observed that financial metrics including billings and subscription growth have improved, partly due to a better-aligned go-to-market strategy implemented under the current leadership.
Despite warming to DOCU shares given the modest business acceleration, Needham remains on the sidelines as normalized billings have not yet reached the 10% level that the firm believes is necessary to re-accelerate the business to match growing Street expectations. InvestingPro analysis suggests the stock may be undervalued at current levels, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of DocuSign and 1,400+ other top stocks.
The research firm indicated it seeks additional evidence that sales can continue to progress further to drive the 10% growth level before changing its investment stance on the document management company.
In other recent news, DocuSign Inc . reported a strong performance for Q2 2026, surpassing earnings and revenue forecasts. The company posted earnings per share of $0.92, exceeding the forecasted $0.85, and revenue reached $800.6 million, outpacing expectations of $779.78 million. This performance was also highlighted by Evercore ISI, which noted revenue of $801 million and billings of $818 million, both surpassing analyst expectations. Following these results, RBC Capital raised its price target for DocuSign to $95 from $90, maintaining a Sector Perform rating. BofA Securities also increased its price target to $102 from $85, citing improved execution in DocuSign’s core eSignature business and momentum in its Identity and Access Management segment. Evercore ISI adjusted its price target to $92 from $90 while maintaining an "In Line" rating. DocuSign’s net revenue retention rate improved to 102%, up from 101% in the previous quarter, according to RBC Capital. These developments reflect a positive outlook from analysts despite varying ratings on the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.