DocuSign (NASDAQ:DOCU) news for Friday includes a downgrade hammering DOCU stock.
The downgrade comes from Deutsche Bank analyst Taylor McGinnis. This has them dropping the stock from its previous buy rating to a new hold rating. However, what doesn’t change is the price target, which remains at $225 per share.
So why exactly is McGinnis dropping DOCU stock down a peg? The analyst has concerns about the company’s current valuation. That doesn’t mean the analyst is completely negative on the stock as they believe the current pattern of growth at DocuSign is set to continue, reports TheFly.
The downgrade news for DocuSign comes after releasing its Q2 earnings report after markets closed on Thursday. This saw the company reporting adjusted earnings per share of 17 cents on revenue of $342.21 million. These were both better than Wall Street’s estimates of 8 cents per share and revenue of $318.57 million for the quarter. It also put out strong guidance for Q3.
Despite those strong results for Q2, DocuSign still saw DOCU stock drop in after-hours trading. The stock dipped about 1% shortly after releasing its earnings report and was down 8.7% when normal trading hours came to a close on Thursday.
With the downgrade news, DOCU stock is continuing on its downward dive. The stock was down 9.7% as of Friday afternoon but is up 218.9% since the start of the year as of yesterday’s close.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
