DocuSign stock gains after analysts cheer earnings beat
Shares of DocuSign Inc. are up 4.1% in premarket trading after the electronic-signature company reported better-than-expected financial results for its first quarter as a public company and saw at least one significant price target increase from an analyst. “Growth in the two key metrics, customers and average revenue per customer, continued along the path shown in recent quarters and that produced a material upside to numbers in the quarter as the leverage in the business shined,” wrote J.P. Morgan’s Sterling Auty, who raised his price target to $70 from $53. “In fact, DOCU showed positive earnings and operating income about three quarters earlier than we had forecast.” William Blair analyst Justin Furby, who rates the stock at outperform but doesn’t have a price target on it, also cheered the company’s latest results. “Demand in the international markets remains healthy, and management called out seeing an acceleration in some of the civil law countries that it targets,” he wrote. “We continue to believe that international markets can drive to 30% or more of the revenue mix longer term” from 17% in the latest quarter. DocuSign’s stock was up 30% in the past month, as of Thursday’s close, while the S&P 500 had gained 3.7%.