Citizens Sees DocuSign (DOCU) As Capital Appreciation Play With Strong AI, IAM Upside

Citizens analyst Patrick Walravens reiterated a Market Outperform rating and $124.00 price target on Docusign Inc. (NASDAQ: DOCU).

The analyst commented, "We maintain our Market Outperform rating and $124 price target on DocuSign, Inc. after hosting an investor lunch and meetings with Head of Investor Relations Matt Sonefeldt in San Francisco on Wednesday, October 8, and after the stock has fallen 21% year to date versus an increase of 15% for the S&P 500 and 14% for the Russell 3000."

"Overall, we view DocuSign as an excellent opportunity for capital appreciation for several reasons, including: 1) it has the dominant e-signature franchise, with an ~1.7M customers, a strong brand, and very high customer satisfaction; 2) the company addresses a large $50B TAM, with $25B from e-signature and $25B from contract lifecycle management; 3) the IAM product cycle is a compelling long-term opportunity and is on track to represent a double-digit percentage of DocuSign's subscription book of business by the end of the year; 4) Docusign has more than a billion signed agreements in its cloud and so far has "100M agreements ingested into Navigator and available for AI processing"; 5) we view the DocuGPT news as well as recent financings for legal AI companies like Harvey, Clio, and Eve as indications of the attractiveness of this market opportunity; and 6) we like the thoughtful leadership of Mr. Thygesen, COO Anwar Akram, CFO Blake Grayson, CRO Paula Hansen, Board Chair James Beer, and Head of Investor Relations Matt Sonefeldt."

For an analyst ratings summary and ratings history on Docusign Inc. click here. For more ratings news on Docusign Inc. click here.

Shares of Docusign Inc. closed at $71.35 yesterday.

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