By Sam Boughedda
Jefferies analysts maintained a Buy rating and $80 per share price target in DocuSign (NASDAQ:DOCU) in a note Tuesday, stating they believe the company's management can reinvigorate growth and that the stock trades attractively.
The firm hosted DocuSign's CFO for investor meetings, and the analysts believe the company's growth can be boosted due to its investments in self-serve channels, pricing/packaging changes, and international expansion.
"DOCU CFO highlighted a few key levers to sustain high-single-digit to low-double-digit rev. growth: leveraging pricing and bundling to drive wall-to-wall core adoption within enterprise customers; increasing Agreement Cloud adoption within existing customers; driving higher intl. growth," wrote the analysts.
They added that other factors the firm liked included the fact Self-Serve Motion is becoming more important to GTM, which should drive higher margins longer, and the company investing in products to drive differentiation.
"Short-term we expect a slower start to F24 as expansions slow, but see opportunity in the back-half as comps ease. The focus on self-serve GTM should result in higher margins LT," they added.