DOCU - Buyout Or Not DocuSign Can Shine

2024-02-04 20:16:10 ET

Summary

• DocuSign's stock has surged over 40% since November, driven by M&A speculation and interest from private equity buyers.
• The company remains attractive even without a buyout offer, with strong fundamentals, industry leadership, and customer diversification.
• DocuSign addresses a $50 billion market opportunity and has high margins and scalability, offsetting slower growth rates.
• Trading at <4x FY25 revenue and ~12x FY25 FCF, DocuSign is a great value buy no matter what happens with its buyout proposal.

Tech companies that are decelerating and have been tossed into the penalty bucket have one quick means of escape: interest from a private equity buyer. And potential rumors are the main ingredient behind DocuSign's ( DOCU ) recent recovery rally, with the stock shooting up more than 40% since the start of November....

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