Shares of DocuSign ( DOCU 6.51% ) rose on Thursday following an analyst upgrade. As of 2:30 p.m. EST, the digital-agreement technology company's stock price was up more than 6%.
Piper Sandler analyst Rob Owens raised his rating on DocuSign's stock from neutral to overweight and boosted his price projection from $225 to $300. His new estimate suggests investors could be in store for gains of approximately 26% from the stock's current price near $238.
DocuSign delivered expectation-crushing sales growth in 2020, including a 53% year-over-year increase, to $382.9 million in the third quarter. Owens sees demand for DocuSign's e-signature solutions remaining strong in 2021 as well as in the years following the COVID-19 crisis.
Demand for DocuSign's tools -- which allow people to prepare, sign, and manage contracts remotely -- has surged during the coronavirus pandemic. Yet the trend toward digitalization was already underway before the pandemic, and it will continue long after it ends. DocuSign is the industry leader in digital-agreement technology, and it stands to profit from this long-term trend more than perhaps any other company.