DocuSign is set to report earnings on June 8, but analysts at UBS aren’t optimistic about the stock’s future.
The firm spoke with three DocuSign customers and one partner in order to asses the company’s demand backdrop. What they found led them to reiterate a Sell rating and lower their price target to $45 from $52.
“A few things stood out to us in our checks this quarter,” analysts wrote. “Feedback sounded similar to our last round of checks, with the consensus for flattish DocuSign spending in CY23, consistent with the company’s 2% billings guidance. ...Adobe again came up in checks, with one large, longtime DocuSign customer saying that Adobe Sign is taking share in their organization.”
Shares of DocuSign were up 0.4% to $56.21.
“On a positive note, the new leadership (including recently-announced CFO Blake Grayson) and better-than-feared prints from SaaS peers (most recently Workday) may be limiting the perceived downside risk,” the analysts added.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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