FMP
Citi Lowers Docusign Price Target Ahead of Earnings Results
Jun 5, 2024 4:20 PM - Davit Kirakosyan
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 8, 2024 5:30 AM - Sanzhi Kobzhan
Understanding Equity Valuation: When to Use DCF, DDM, and Price-Income (Multiplicators) Models
When it comes to investing in stocks, one of the key decisions an investor must make involves determining the intrinsic value of a company's shares. Equity valuation isn't just about numbers, it's an art mixed with science, aiming to predict future performance based on current and historical data. H...
Nov 22, 2024 5:08 AM - Parth Sanghvi
Fundamental Analysis: Principles, Types, and How to Use It
Fundamental analysis is one of the most essential tools for investors and analysts alike, helping them assess the intrinsic value of a stock, company, or even an entire market. It focuses on the financial health and economic position of a company, often using key data such as earnings, expenses, ass...
Dec 17, 2024 8:58 AM - Sanzhi Kobzhan
Examining Tesla’s Financial Health Using FinancialModelingPrep’s Ratios API
Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors and market watchers. By examining a snapshot of Tesla’s financial ratios—such as those provided by FinancialModelingPrep’s Ratios API—we can get a clearer picture of the company’s f...
