DocuSign (DOCU) is showing signs of life.
At the moment, the stock is up about $2.25 after Jefferies said it’s a buy. In fact, analyst Brent Thill reiterated his buy rating, with a price target of $80 from $70.
As noted by Barron’s, “Thill said there are opportunities for DocuSign to sell more products to its current customer base and expand into international markets. He also expects the management to improve efficiency and sell products more effectively. The analyst also predicts DocuSign’s operating profit margins could eventually rise to the high 20% level, versus the 21% Wall Street analysts expect for the fiscal fourth quarter.”
Late last month, Wolfe Research upgraded DocuSign to Peer Perform from Underperform, saying he believes investors are underappreciating the “true margin potential” of the business and views consensus estimates as “relatively de-risked,” as noted by TheFly.com.
If DOCU can break above double-top resistance around $70, it could test $77 next.