DocuSign price target raised to $59 from $53 at RBC Capital

RBC Capital raised the firm’s price target on DocuSign to $59 from $53 but keeps a Sector Perform rating on the shares. The company’s FY24 guidance was "disappointing", with billings growth outlook coming in as in-line to slightly below expectations, the analyst tells investors in a research note, also citing the implied "muted" margin expansion as a surprise, with investors expecting the cumulative 20% reduction in the workforce to lead to a better outlook. RBC adds that its higher price target on DocuSign reflects peer multiple expansion, though it views the stock as "fairly valued" at enterprise value of 21-times expected 2023 free cash flows.