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Why DocuSign Stock Rose Today

By Joe Tenebruso – Jul 9, 2020 at 6:36PM

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Analysts are growing more bullish on the e-signature leader's growth prospects.

What happened

Shares of DocuSign (DOCU 3.92%) climbed 2.9% on Thursday, even as the Dow Jones Industrial Average (^DJI 0.33%) fell 1.4%, following bullish comments by analysts. 

So what

Wedbush analyst Daniel Ives reiterated his "outperform" rating on DocuSign's stock and boosted his target price from $165 to $240. Meanwhile, JMP Securities analyst Patrick Walravens also repeated his belief that DocuSign's stock will outperform the market, and he, too, raised his price forecast, from $150 to $233. Ives' and Walravens' new targets represent potential gains for investors of roughly 13% and 10%, respectively, based on DocuSign's closing price of $212.42.

A digital bull is climbing an upwardly sloping stock chart.

DocuSign's shares rose on Thursday after two analysts lifted their price estimates. Image source: Getty Images.

Both analysts say the coronavirus pandemic -- and the corresponding trend toward remote work -- is boosting demand for DocuSign's digital agreement technology.

Now what

DocuSign's software is helping businesses digitalize their paper-based processes. Its cloud-based e-signature software and ancillary services help companies create, sign, and manage contracts digitally. This provides a host of benefits, including increased security and efficiency and significantly lower costs.

The COVID-19 crisis and related social distancing measures are making digital agreement services more important than ever before -- and DocuSign stands to benefit perhaps more than any other company.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends DocuSign. The Motley Fool has a disclosure policy.

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