DocuSign could soar another 15% as robust earnings prove remote work is here to stay, Wedbush says

Wedbush's Dan Ives reiterated his $340 price target for DocuSign after the e-signature company crushed earnings.
Shares of DocuSign rose to an all time high Friday after the company beat earnings and revenue forecasts.
Ives sees DocuSign continuing to gain customers as workers remain remote.
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DocuSign's better-than-expected second quarter earnings speak to a special growth story around remote work that isn't slowing down, said Wedbush's Dan Ives.

In a Friday note, the senior analyst reiterated his outperform rating and $340 year-end price target for DOCU, representing a 15% increase from Thursday's close. The electronic agreements company reported earnings per share of $0.47 per share, versus $0.40 expected. Meanwhile, DocuSign reported a total revenue of $511.8 million, beating estimates of $488.7 million and increasing 50% year-over-year.

Ives explained that the new normal in the post-coronavirus economy involves a workforce that is heavily remote for the foreseeable future, and that will accelerate DocuSign's ability to further penetrate existing, as well as new customers.

"Given the eye popping fundamental growth and cloud driven shift, we believe the DOCU story in still in the early innings of playing out as evidenced by our recent checks and last night's results," said Wedbush. "We are seeing the DOCU solution set and e-signature platform being prioritized by IT decision makers as it serves a clear need for remote workers and appears to be the platform solution going forward for many enterprises."

Shares of DocuSign jumped as much as 6.8% to a record high of $314.76 on Friday before slightly paring gains. The company has rallied almost 40% year-to-date and is up about 680% since going public in 2018.

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