The results, by and large, were impressive. DocuSign turned in $0.72 per share for earnings, which was easily ahead of the $0.56 per share analysts were expecting. However, some wonder if demand is being pulled forward. After all, future guidance wasn’t all that great as billings growth is expected to slow down.
A valid point, but there was dissent as well. A Morningstar report noted that DocuSign’s results were produced during a period with “macroeconomic headwinds” already in play. DocuSign’s strategy of improving its expenses may have done the job. Sure, growth is slowing, but it would be slowing during a weaker economy anyway. Thus, DocuSign’s weakness may not be so much intrinsic as it is a result of conditions.
Overall, DocuSign stock is considered a Hold based on three Buy ratings, three Sell ratings, and seven Hold ratings. With an average price target of $65.73, it offers its investors a 15.64% upside potential.