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On Thursday, UBS analysts, led by Karl Keirstead, adjusted the price target for Docusign Inc. (NASDAQ: DOCU) stock, lowering it to $85 from the previous $90, while maintaining a Neutral rating on the company. The revision followed the attendance of UBS analysts at DocuSign’s annual Momentum user conference and analyst session held in New York.
At the conference, DocuSign (NASDAQ:DOCU) unveiled its first AI agent and introduced new additions to its Identity Access Management (IAM) platform. The products sparked significant customer interest, particularly in the AI and IAM capabilities. The company’s strong financial health score of 3.12 on InvestingPro and impressive 79.25% gross profit margins suggest solid operational execution. However, several customers expressed concerns about increasing budget constraints influenced by macroeconomic factors and tariffs.
Keirstead noted that despite the absence of new financial or other disclosures at the investor session, the adjustments in price target reflect the current market conditions. He emphasized that with Docusign’s stock trading at 14 times the calendar year 2026 enterprise value to free cash flow (EV/FCF), the firm is reiterating its Neutral stance on the stock.
The UBS team’s presence at the conference provided an opportunity to gauge customer reactions firsthand, which played a part in their assessment of the company’s valuation and outlook. As of now, the revised price target suggests a more cautious view of DocuSign’s near-term financial performance in light of the noted economic pressures.
In other recent news, Docusign Inc. reported notable developments in its financial performance and received various analyst ratings. The company showcased a 9% growth in subscription revenue in its fourth-quarter earnings, surpassing expectations, and marked a 9% billings growth in the third quarter. Despite these positive results, UBS revised its price target for Docusign to $90, maintaining a Neutral stance due to conservative revenue guidance for fiscal year 2026. William Blair also maintained a Market Perform rating, noting strong adoption of Docusign’s Identity Authentication Management (IAM) platform, which is expected to drive future growth. Wells Fargo (NYSE:WFC) reiterated an Underweight rating with a $73 price target, citing challenges in accelerating growth amid foreign exchange headwinds and changes in compensation structures. Evercore ISI initiated coverage with an In Line rating and a $100 price target, highlighting Docusign’s solid performance in fiscal year 2025 and strategic growth opportunities in IAM. JMP Securities maintained a Market Outperform rating with a $124 target, confident in Docusign’s market leadership and growth potential. These recent developments reflect varied analyst perspectives, focusing on Docusign’s growth strategy and financial outlook.
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