Citi Cuts DocuSign to Neutral and Slashes Target to $50

Overview

• DocuSign, which Citigroup cut to Neutral on Friday with a new $50 target, fell about 6 percent as investors sold the stock.
• Citi said fiscal 2026 revenue is growing about 8 percent, a slow pace that no longer supports the rich valuation the company once enjoyed.
• The report flagged rising competition from AI agents like Anthropic’s Managed Agents, which can run multi-step office tasks and could reduce the need for stand-alone e-signature tools and seat-based licenses.
• Shares recently traded near $42.49, down roughly 34.5 percent this year and 54.7 percent below the June 2025 peak, putting market value around $8.86 billion.
• Selling had already intensified the day before following reports of a Middle East ceasefire breach and new AI headlines, with a since-deleted post by Michael Burry adding to investor unease.