Shares of the electronic signature company DocuSign (NASDAQ:DOCU) rose today after a price target increase from an analyst.
The tech company's stock rose by as much as 5.8% on Friday and was up 5% as of 2:13 p.m. EDT.
DocuSign investors were responding to a note that Wedbush analyst Daniel Ives published today, in which Ives raised the company's price target from $260 to $290.
Ives mentioned that his optimism comes from his expectation that DocuSign will continue to get more deals with companies through fiscal 2022. He also mentioned that the ongoing increase in remote work should spur the use of e-signature services by companies.
Investors jumped on Ives' positive sentiment toward the stock, which had already experienced gains earlier this month when the company reported impressive first-quarter results. Investors have pushed up DocuSign's share price by 23% year to date as a result.
DocuSign has been volatile over the past year as investors have tried to gauge just how much demand the company's services will have once the pandemic has subsided. But it appears that at least some investors are now expecting DocuSign to continue growing even as some companies are bringing workers back into the office and social distancing is no longer the norm.