DOCU - DocuSign: Buy Weakness On Failed Buyout

2024-02-07 16:42:44 ET

Summary

• DocuSign, Inc. surprised the market by remaining an independent company after failed buyout negotiations.
• The company has the ongoing opportunity to expand into agreement management and increase spending from current customers, but revenue growth could dip to only 5%.
• DocuSign's stock is cheap at 4x FY25 sales targets after falling back to $50 on the failed deal.

After months of speculation, DocuSign, Inc. ( DOCU ) surprised the market with plans for a restructuring and a new path as an independent company. The e-signature company was unable to come to terms on a buyout price likely due to the low valuation heading into the deal negotiations. My investment thesis is ultra Bullish on the stock following a likely dip back into the $40s....

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