Five-star analyst Karl Keirstead recently shifted his stance on cloud stock DocuSign (NASDAQ:DOCU) by upgrading the company from Sell to Hold and adjusting the price target from $48 to $62. He noted that challenges still exist, which include competition from Adobe (NASDAQ:ADBE) and a high eSignature market penetration rate. Nevertheless, DocuSign has overcome significant growth hurdles since its COVID-19 boom and has the potential to improve its margin.
Additionally, Keirstead has adjusted his forecasts. He now anticipates billings growth of 8.1% and revenue growth of 6.4% for the coming cycles, with operating margins expected to rise to 29.6%. For reference, his previous estimates were 6.8%, 5.5%, and 29.3%, respectively. Keirstead currently has a 45.33% average return per DOCU rating.
Is DOCU Stock a Buy?
Overall, analysts have a Hold consensus rating on DOCU stock based on three Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After an 8.8% rally in its share price over the past year, the average DOCU price target of $66.77 per share implies 10.2% upside potential.
