DocuSign offered healthy demand signals to start fiscal 2025, says Citi

Citi says DocuSign’s “beat and raise” quarter, even if a bit skinnier than prior quarters, offered healthy demand signals to start fiscal 2025, especially in the context of many software companies missing and lowering. The firm continues to see second half of 2024 profitability with hiring measured and further efficiencies. The $1B buyback authorization offers positive views on capital allocation, especially given the stock’s discounted valuation, adds Citi. It reiterates a Buy rating on DocuSign with an $86 price target, saying it is “not fretting about a skinny beat.”