Citi analysts slashed their price target for Docusign (NASDAQ:DOCU) to $86 from $93, while maintaining a Buy rating, ahead of the company’s Q1/25 earnings repor

Citi Lowers Docusign Price Target Ahead of Earnings Results


blog post cover photo

Image credit: FMP

Citi analysts slashed their price target for Docusign (NASDAQ:DOCU) to $86 from $93, while maintaining a Buy rating, ahead of the company’s Q1/25 earnings report, scheduled tomorrow, after the market close.

The analysts indicated that the outlook for the company appears balanced, as industry checks show that partners met Q1 targets and web traffic showed slight improvement. While the near-term guidance seems attainable, there may be challenges in achieving higher growth in the second half of the year due to cautious partner commentary and macroeconomic uncertainties.

Citi’s fiscal 2025 operating margin forecast is about 100 basis points higher than the consensus, indicating continued opportunities for margin improvement, even after recent workforce reductions, as DOCU focuses on product-led growth (PLG) and increased automation.

Despite slightly moderating estimates, the analysts remain at the high end of the guidance, adjusting the price target to $86 based on updated regression analysis. The Buy/High Risk rating is upheld due to the broad market potential, margin improvement opportunities, and the enhanced PLG strategy.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep