DocuSign (DOCU) - Get Report shares rose sharply Thursday after RBC analyst Alex Zukin lifted his price target for the electronic signature company to $210 from $170, keeping his rating at outperform.
He acted based on his intra-quarter study of the company’s download data, which continues to show strong demand, The Fly reports.
Zukin wrote in a commentary that DocuSign benefits from the "greatest engagement durability" among the work-from-home companies he covers, with business workflow becoming more automated.
DocuSign appears set to take a disproportionate market share, he said, according to The Fly.
DocuSign shares recently traded at $194.93, up 8.92%, and have jumped 112% over the last three months.
Also last month, DocuSign reported stronger-than-expected earnings for the quarter ended April 30, despite the coronavirus pandemic. It posted revenue of $297 million, beating FactSet’s analyst forecast of $281 million, and adjusted net income per share of 12 cents, topping analysts’ estimate of 10 cents a share.
Morningstar analyst Dan Romanoff wrote that he was impressed with the results.
“Narrow-moat DocuSign again reported strong quarterly results, including upside to our revenue and EPS expectations, and also provided a similarly strong outlook in the face of the coronavirus pandemic,” he wrote in a commentary.
“All metrics showed signs of strength. Like other work-from-home enablers, DocuSign is benefiting from an immediate surge in new customers and expansion of use cases within existing customers.”