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An analyst from RBC downgraded shares of DocuSign (NASDAQ:DOCU) to Sector Perform from Outperform with a $65 per share price target (down from $80).
The analyst based his downgrade on four key elements:
The analyst remains positive on DOCU in the long-term, especially bearing in mind the company’s total addressable market (TAM), but he sees shares “range-bound until evidence of a successful turnaround and reacceleration.”
On the potential business sales, he added that a $20 billion check “would be tough to write for both private equity and strategic buyers, making a sale somewhat less likely now.”
At current levels, shares are “fairly valued,” the analyst concluded.
DOCU stock is down 3.8% in premarket Monday.
