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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