Needham analyst Scott Berg has maintained their neutral stance on DOCU stock, giving a Hold rating today.
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Scott Berg has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding DocuSign’s recent performance. The company’s operational improvements in the second quarter, under the leadership of CEO Allan Thygesen, have been noteworthy, with a reduction in downsells and promising sales of new solutions. Additionally, financial indicators such as billings and subscription growth have shown positive trends, attributed to a more aligned go-to-market strategy.
However, despite these positive developments, Berg remains cautious as the normalized billings have not yet reached the critical 10% growth level that he believes is necessary for the business to achieve a more robust subscription growth profile. This threshold is seen as essential to meet the expectations of the market. Consequently, Berg is taking a wait-and-see approach, looking for further evidence of sustained sales progress before considering a more favorable rating.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $102.00 price target.