JPMorgan analysts upgraded DocuSign (NASDAQ:DOCU) from Underweight to Neutral, raising the price target to $75 from $70 on the stock. The decision reflects a more balanced view on the stock as signs of fundamental improvement begin to emerge.
DocuSign’s stock has been range-bound between $50 and $110 per share over the past three years, struggling to regain momentum following its pandemic-driven surge, which saw prices peak above $300. The stock has declined about 25% since its fiscal Q3 earnings report in early December, underperforming the broader market, which fell roughly 5% over the same period.
Despite this prolonged correction, JPMorgan sees DocuSign’s valuation as relatively undemanding, particularly as early signs of stabilization appear within its business fundamentals. The company has been in a post-pandemic reset phase, working through the impact of an accelerated demand pull-forward. However, there is increasing potential for its growth rate to level out or even improve in the near term.
With these dynamics in play, JPMorgan believes the stock now presents a more balanced risk-reward profile, justifying the shift to a Neutral stance.