DocuSign rallies after UBS moves out of bear camp

Docusign

12/04/2024 15:58

** DocuSign Inc's shares  DOCU.O  last up 1.4% at $60.30 on
Fri, hit highest since Feb 1, after UBS upgrades e-signature
vendor to "neutral" from "sell", saying risk/reward appears more
balanced
    ** Brokerage hikes PT by $14 to $$62
    ** UBS says in note while it remains on the sidelines given
high market penetration, competition from Adobe  ADBE.O  and
mixed traction with DocuSign's CLM (Contract Lifecycle
Management), co has "largely moved past the material post-COVID
expansion headwinds and has further margin upside potential"
    ** View has changed following another quarter of
encouraging/stabilizing demand trends, and billings deceleration
has already played out, UBS adds
    ** DOCU's shares fell sharply in early Feb after co
announced 6% workforce reduction just after report PE firms Bain
Capital and Hellman & Friedman stalled deal talks
    ** 6 of 25 analysts rate DOCU "buy" or "strong buy", 17 rate
"hold" and 2 have "sell" recommendations and their median PT is
$65, per LSEG data
    ** Including move on the session, stock up ~8% over the past
12 months but well off its 2021 record high of around $315

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))