DocuSign (NASDAQ:DOCU) was doing quite well over the last couple of days after turning in an impressive earnings report. However, there were those who saw some concerns lurking between the lines.
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.
