DOCU - DocuSign: Limited Downside Risk While Waiting On AI

2024-06-02 11:00:00 ET

Summary

• DocuSign needs growth in its AI product portfolio to drive growth in FY25.
• The market will focus on signs of whether billings growth can accelerate from cycle lows in FQ1.
• The acquisition of Lexion provides an opportunity for AI innovation in Intelligent Agreement Management.
• The stock is relatively cheap at 17x EPS targets with strong cash flows and the future opportunity in AI.

DocuSign, Inc. ( DOCU ) heads into another quarterly report with more hope for a business turnaround. The electronic signature company expects a pickup in the AI product portfolio to drive growth in FY25. My investment thesis is Bullish on the cheap stock, especially on this recent dip heading into FQ1'25 earnings. ...

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