DocuSign price target lowered to $60 from $65 at Piper Sandler

Piper Sandler lowered the firm’s price target on DocuSign to $60 from $65 and keeps a Neutral rating on the shares. The company’s Q4 results came in ahead across top and bottom line metrics, but the guidance was relatively inline with prior expectations, the analyst tells investors in a research note. While the operating margin guidance implies modest year-over-year leverage, it was below initial expectations despite DocuSign’s nearly 20% in total headcount reduction, as the company plans to reinvest some savings into product development, says the firm. It awaits signs of growth stabilization and a meaningful profitability inflection before becoming more constructive on the shares.