The firm also lowered its billings forecast for the coming year
The shares of Docusign Inc (NASDAQ:DOCU) are down 24.3% to trade at $66.20, following the company's dismal earnings report. DOCU posted profits of 38 cents per share, falling below analysts' estimates of 46 cents per share. Though its reported revenue of $588.69 million did top expectations, the e-signature firm also slashed its billings forecast for fiscal 2023.
The report has invited several bear notes. No less than six analysts slashed their price targets, including BofA Global Research to $72 from $120. The brokerage also downgraded DOCU to "neutral" from "buy." Piper Sandler also chimed in with a price-target cut to $75 from $100, noting the company's weakening macro backdrop.
Analyst sentiment was already hesitant coming into today. Of the 12 in coverage, seven considered DOCU a "hold" or worse, compared to five " buy" or better ratings. Meanwhile, the 12-month consensus price target of $104.39 is a 58.2% premium to last night's close.
This pessimism isn't surprising, considering DOCU's 42.6% year-to-date deficit. Despite a rally attempt off its mid-May two-year bottom near the $64 level, the security failed at the 80-day moving average -- a trendline that also acted as a ceiling late last year.