DocuSign Downgraded to Sector Perform at RBC Capital
<p>RBC Capital analysts downgraded <a href='https://financialmodelingprep.com/financial-summary/DOCU'>DocuSign, Inc. (NASDAQ:DOCU)</a> to sector perform from outperform and lowered their price target to $65 from $80.</p>
<p>The analysts mentioned several reasons for the downgrade, including (1) a long path to turnaround, which is effectively on hold without a CEO, (2) execution issues and high employee turnover reducing the analyst’s confidence in numbers, and (3) tough setup in the near-term. While the analysts believe their estimated numbers are de-risked (6% revenue growth and 3% billings growth in 2024), they are well below the street estimates, which is looking for 11% revenue growth and 13% billings growth. Given management has guided to 6% billings growth in the second half of the year, the analysts believe it is hard to underwrite those expectations.</p>
<p>Furthermore, the analysts believe the company needs to build credibility with investors, making a turnaround tough to get behind. </p>

NASDAQ:DOCU