DocuSign (DOCU) Stock Drops After Reducing Billings Guidance

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Jun 06, 2025
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  • DocuSign (DOCU, Financial) revises annual billing projections downwards, impacting stock performance.
  • Analysts maintain a "Hold" consensus with an average price target of $92.77.
  • GuruFocus' GF Value estimate suggests the stock is overvalued with a projected decline.

Shares of DocuSign (DOCU) have come under pressure as the company adjusted its annual billing projections downward. While the company forecasts a 6% revenue growth for fiscal 2026, this revision has led to increased apprehension among investors. The management attributes this guidance reduction primarily to issues related to renewal timing, which are affecting billing growth.

Wall Street Analysts Forecast

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Assessing the perspectives of financial analysts, the one-year price targets from 16 experts reveal an average target price of $92.77 for DocuSign Inc (DOCU, Financial). This estimate spans a high of $124.00 and a low of $65.00, suggesting a potential downside of 0.24% from the current stock price of $93.00. For those interested in a more detailed analysis, visit the Docusign Inc (DOCU) Forecast page.

The consensus among 23 brokerage firms rates DocuSign Inc (DOCU, Financial) with an average brokerage recommendation score of 2.7, indicating a "Hold" status. This scoring system ranges from 1 to 5, where 1 represents a Strong Buy, and 5 signifies a Sell.

Evaluating the GF Value Estimate

According to GuruFocus' GF Value estimation, DocuSign Inc (DOCU, Financial) is valued at $68.52 for the next year. This estimate projects a significant downside of 26.32% from the current trading price of $93. The GF Value is a proprietary metric by GuruFocus, assessing what the stock ought to be traded at, integrating historical trading multiples, past business growth, and future business performance projections. To explore this valuation in detail, visit the Docusign Inc (DOCU) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.