DocuSign’s Market Position Stable but Valuation Concerns Persist: Analyst Maintains Hold Rating

Bradley Sills, an analyst from Bank of America Securities, reiterated the Hold rating on DocuSign. The associated price target was raised to $102.00.

Bradley Sills has given his Hold rating due to a combination of factors related to DocuSign’s current market position and future prospects. While the company’s Q2 results indicate a positive trajectory in its recovery, particularly in the core eSignature and emerging IAM businesses, the valuation remains a concern. The long-term potential of the IAM business is promising, as it positions DocuSign for larger and more strategic deals, but the market efforts in this area are still developing.
Despite raising the price objective to $102, reflecting improved billings growth, Sills maintains a Neutral stance on valuation. The stock’s current trading multiples suggest that much of the near-term upside is already accounted for, especially when compared to peers. The guide for future billings growth indicates stability in the low double-digit range, which is an improvement from previous years, yet the valuation metrics suggest limited immediate gains.