Selected stock price target news of the day - June 9, 2023

By Matthew Otto

DocuSign’s Q1 2024 Financials Outperform Projections

DocuSign posted revenue for the quarter of $661.4 million, exceeding both its guidance range ($639 million to $643 million) and the Street’s consensus ($642 million). Billings for the period reached $674.8 million, outperforming the projected range of $615 million to $625 million.

The robust growth in billings is expected to be well-received by investors. Allan Thygesen, CEO of DocuSign, stated that while there is more work to be done, he’s optimistic about the company’s progress in delivering smarter, easier, trusted agreements. He also emphasized the firm’s rapid pace of product innovation and improved go-to-market execution, attributing much of their success to AI.

However, Thygesen remains wary of the macroeconomic outlook. While there’s increased caution among enterprise customers, this is offset by the small business segment’s strength. His guidance for the company does not anticipate any significant economic shifts.

For the next quarter ending July 31, 2023, DocuSign’s revenue is expected to range between $675 million and $679 million, above the Street’s forecast of $670 million. Projected billings range from $646 million to $656 million.

For FY 2024, the company raised its revenue outlook to between $2.713 billion and $2.725 billion, from the prior range of $2.695 billion to $2.707 billion, slightly above the Street’s consensus of $2.7 billion. The new forecast for full-year billing is a range of $2.737 billion to $2.757 billion, up from a previous forecast of $2.705 billion to $2.725 billion.

Moreover, DocuSign is making strides in adding new AI features to its contract management software, including software that creates summaries of documents for signees’ understanding. By year-end, the firm will roll out new software to analyze trends and search across a company’s corporate agreements, potentially across hundreds of thousands of contracts.

Financial Analysts Boost DocuSign’s Price Targets Following Q1 Results

Citi analyst Tyler Radke has raised his price target to $78.
BofA Securities analyst Brad Sills has increased his price target to $72.
UBS analyst Karl Keirstead has raised his price target to $48.

The stock price has been trading in a small range around $50 for the last year with analysts split in their opinion on its future prospect.

Analyst Mark Murphy of JP Morgan has currently the highest performing score on DOCU with 3/4 (75%) price target fulfillment ratio. His price targets carry on average an $21.93 (14.59%) potential upside and are fulfilled within average of 83 days.

Braze Beats Q1 Estimates, Provides Optimistic Guidance

Braze reported a 31.3% YoY increase in Q1 2024 revenue, amounting to $101.8 million. the increase is primarily from new customers, upsells, and renewals. Their net cash from operating activities stood at $22.5 million, and free cash flow at $21.7 million. Despite a GAAP operating loss of $41.9 million, their non-GAAP net loss per share was $0.13, better than the predicted $0.18. Braze’s customer base has expanded to 1,866, with 164 customers having an annual recurring revenue (ARR) of over $500,000.

For the second quarter of 2024, Braze anticipates an EPS of ($0.13)-($0.14), with a revenue projection of $108-109 million, both figures surpassing consensus estimates. They also updated their FY2024 guidance, with an expected EPS of ($0.51)-($0.55) and revenue of $442.5-446.5 million, exceeding the consensus revenue estimate.

Wall Street Action

Piper Sandler analyst Brent Bracelin maintains an Overweight rating and raises the price target from $40 to $43.
UBS analyst Taylor McGinnis lifts the price target to $38.
Canaccord Genuity analyst David Hynes keeps a Buy rating and increases the price target to $42, up from $38.

All analysts that cover the stock are either bullish or Neutral at the moment.

Analyst Taylor Mcginnis of UBS has currently the highest performing score on BRZE with 1/2 (50%) price target fulfillment ratio. His price targets carry on average an $6.97 (17.90%) potential upside and are fulfilled within an average of 17 days.

Ford and GM agree to use Tesla’s Supercharger network

Tesla announced that Ford and General Motors would utilize the Tesla Supercharger network for their electric vehicles. This decision places almost 70% of the U.S. electric vehicle (EV) market on Tesla’s North American Charging Standard, creating pressure for other companies to transition from the currently dominant Combined Charging System (CCS) to Tesla’s infrastructure.

Tesla’s market value is projected to increase by over $30 billion to approximately $780 billion due to this development.

Wedbush Securities analyst Dan Ives predicted that the inclusion of Ford and GM could potentially add an extra $3 billion to Tesla’s EV charging services revenue over the coming years. Consequently, they raised their price target on Tesla’s shares to $300, approximately 30% higher than the last close.

The brokerage also indicated that the decision will help GM’s ambition to expand charging access for its EV drivers through the Ultium Charge 360 initiative and mobile apps. Despite these moves, data from AutoForecast Solutions suggest that both Detroit automakers are expected to lag significantly behind market leaders Tesla and Volkswagen in the EV sector until at least 2028.

Analyst Dan Ives has a 68/95 (71.58%) price target fulfillment ratio on Tesla. His price targets carry on average an $44.1 (20.77%) potential upside and are fulfilled within average of 97 days.