Things were looking good for DocuSign (NASDAQ:DOCU) for a while there. The electronic document signing operation posted winning results and garnered some very positive analyst remarks. But in Friday afternoon’s trading, the gains DocuSign posted in the premarket were lost, and DocuSign turned red.
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Dan Ives, analyst with Wedbush Securities, found fault with little of what DocuSign brought out. Ives declared that DocuSign was continuing to “…put its foot on the gas” and delivering value to investors with “…continued product innovation to deepen its product lineup and differentiate its offerings of agreement workflow products.” Ives also hailed DocuSign’s approach to “omnichannel” marketing, a valuable approach for any business that wants to reach the largest amounts of people and maintain that “sticky install base” that Ives also hailed.
DocuSign indeed delivered quite a quarter, bringing in beats for both revenue and earnings and showing off an impressive quantity of subscription revenue. That nicely underscores Ives’ key point about a “sticky install base” and should be going farther than it is to keep businesses in the fold. Even DocuSign’s projections proved winners.
Analysts, however, are somewhat divided. With three Buy ratings, three Sells, and seven Holds, DocuSign stock is considered a Hold by analyst consensus. Nonetheless, with an average price target of $64.09, DocuSign stock offers investors a healthy 25.52% upside potential.