DocuSign shares inch higher after HSBC upgrades rating

Investing.com -- Shares in DocuSign (NASDAQ:DOCU) edged higher in early U.S. trading on Wednesday after analysts at HSBC Global Research improved their rating of the electronic agreement manager to hold from reduce.

In a note to clients, the HSBC analysts said they see signs of improvement in demand for its products and services, which declined significantly following the end of COVID-19 lockdowns.

"Demand was frontloaded during the peak of the COVID-19 lockdowns, and we see a natural process of mean reversion taking place over time," the analysts added.

A pandemic darling, DocuSign shares soared by 200% in 2020, but slumped by almost a third in 2021 and 64% last year. The stock has fallen by over 25% so far in 2023, weighed down recently by the tough demand environment and the departure of its chief financial officer in March.

The HSBC analysts argued that their hold rating is now appropriate given that the stock is trading closer to its fair value estimate. But they flagged that they need "more confidence" in the company's ability to trend back toward pre-COVID growth levels and "provide trustworthy long-term guidance."

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: