What happened
Shares of DocuSign (DOCU 0.19%) climbed 2.9% on Thursday, even as the Dow Jones Industrial Average (^DJI 1.04%) 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.
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.
