DocuSign's Lack of Q4 Outlook Lift Disappoints, UBS Says

MT Newswires Live12-06

DocuSign's (DOCU) billing growth slowing to around 6% to 7% in the fourth quarter is expected to weigh on the stock, UBS said Friday, as it trimmed its annual revenue estimates.

The electronic signature platform reported strong third-quarter billings growth driven by early renewals, but the lack of an increase in its fourth-quarter outlook amid an anticipated sequential decline in margins will weigh, UBS said.

The brokerage is cutting its fiscal 2027 total revenue growth estimate to 7.8% from 8.5%, citing little upside in second-half performance and a slowing growth rate.

UBS maintained its neutral rating but lowered its price target to $75 from $85.

Shares of DocuSign were down 7.2% in Friday trading.

Price: 65.97, Change: -5.13, Percent Change: -7.22

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