Analysts Lift DocuSign Price Targets Following Earnings Beat

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DocuSign (DOCU) - Get Report received a raft of accolades and price-target upgrades on Friday following better-than-expected fiscal third-quarter earnings, driven higher by the pandemic and need for electronic e-signatures and document exchange.

DocuSign on Thursday posted fiscal third-quarter earnings of 22 cents a share, well above the 13 cents a share forecast by analysts polled by FactSet. Sales rang in at $382.9 million, up 53% year over year and also above expectations of $361.2 million.

The results spurred a raft of analysts accolades and upgrades, starting with Citi analyst Walter Pritchard, who raised his price target on DocuSign to $282 from $257 and maintained his buy rating on the shares amid what he sees as "higher growth for longer" as the pandemic shifts businesses to digital signing permanently.

JMP Securities analyst Patrick Walravens followed suit, raising his price target on DocuSign to $276 from $261 and keeping his outperform rating on the shares, while Needham analyst Scott Berg lifted his one-year target to $275.

Wedbush Securities analyst Dan Ives also jumped on the DocuSign-praising bandwagon, calling DocuSign’s results “stellar,” maintaining his outperform rating on the stock and holding on to his $270 price target.

Deutsche Bank analyst Taylor McGinnis struck a more cautious tone, however, raising his price target $235 from $225 and keeping his hold rating on the shares, noting that "...recent high-growth rates are likely not sustainable."

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