DocuSign facing a 'rebuilding year' as MoffettNathanson sets underperform rating

Sep. 22, 2022 9:16 AM ETDocuSign, Inc. (DOCU)By: Rex Crum, SA News Editor1 Comment

DocuSign headquarters building

Michael Vi/iStock Editorial via Getty Images

Saying this is a "rebuilding year" for DocuSign (NASDAQ:DOCU), MoffettNathanson analyst Jackson Ader on Thursday initiated coverage of the electronic-signature technology company with an underperform rating, or the equivalent of sell.

Ader said that while DocuSign (DOCU) is "well-diversified" across front and back-office business environments, the overall lay of the land for the company is looking difficult due to a slate of recent executive changes.

In June, DocuSign (DOCU) Chief Executive Dan Springer resigned not long after the company delivered quarterly earnings that missed Wall Street's expectations, and also gave a weaker-than-expected revenue outlook.

Ader also set a $58-a-share price target on DocuSign's (DOCU) stock.

Ader noted that DocuSign (DOCU) is scrambling to get its executive house in order as "the sales leadership is brand new in a bunch of areas." Ader also said that the company is dealing with new heads of its North American small-and-medium-sized business operations and other areas just coming into their jobs during the first half of the year.

Ader summed things up by saying, "In brief, the rebuild is out of order."

However, despite the upheavals of a few months ago, DocuSign (DOCU) has shown some recent signs of turning things around. Earlier this month, DocuSign (DOCU) reported quarterly results that topped expectations, and which led some analysts to say that the company is taking steps in the right direction.

Recommended For You

Comments (1)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.