DocuSign's (DOCU) Intelligent Agreement Management platform growth will take time despite a strong fiscal first-quarter performance, Wedbush said in a note on Friday.
The brokerage maintained its neutral rating and lowered its price target to $58 from $60.
DocuSign's customer growth rose steadily by 9% to about 1.9 million, Wedbush said, adding that customers spending over $300,000 annually increased 12%.
While the company reiterated its fiscal 2027 guidance, including annual recurring revenue growth of 8.25% to 8.75%, Wedbush said DocuSign still needs sustained annual recurring revenue acceleration and more stable revenue growth before sentiment improves.
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