Technology

Post-IPO Breakdown: What Analysts Are Saying About DocuSign and Smartsheet

Chris Lange

Published: May 22, 2018 12:50 pm

Last Updated: January 11, 2020 11:18 pm

Both Smartsheet Inc. (NYSE: SMAR) and DocuSign Inc. (NASDAQ: DOCU) have seen their respective quiet periods come to an end. Each company has seen explosive growth since its IPO, and now analysts are calling for them to run even higher.

Although these two firms tend to get grouped together, they are not identical. But each has a role in simplification platforms that businesses and enterprises are starting to use regularly.

Both companies have grown handily and still have larger total addressable market opportunities as they expand their customer bases and as the public becomes more comfortable with the digitalization process. Both companies even have a path toward profitability, if they deliver in the coming quarters and years.

Starting with DocuSign, this firm priced its IPO at $29 per share in late April but it actually entered the market at $38, almost one-third above the price. Compared to the original pricing, the stock is up about 49% from the IPO.

DocuSign operates a cloud-based platform that enables more than 370,000 companies and hundreds of millions of users to make nearly every agreement, approval process or transaction digital — from practically any device, virtually anywhere in the world, securely.

Here’s what analysts are saying now that the quiet period has come to an end:

• Citigroup initiated it with a Buy rating and a $59 price target.
• Deutsche Bank initiated it at Hold with a $45 price target.
• JMP Securities started it at Market Perform rating with a $52 price target.
• JPMorgan initiated DocuSign as Overweight with a $53 price target.
• Morgan Stanley started it as Equal Weight with a $42 price target.
• Piper Jaffray started it as Overweight with a $52 price target.

Shares of DocuSign recently traded up about 1% at $43.44, with a post-IPO range of $37.00 to $46.70.

As for Smartsheet, this firm priced its IPO at $15 per share, but it actually entered the market at $18.40, about 23% above the price. Compared to the original pricing, the stock is up about 37% from the IPO.

This company is a leading cloud-based platform for work execution, enabling teams and organizations to plan, capture, manage, automate and report on work at scale, resulting in more efficient processes and better business outcomes.

Analysts weighed in on the firm:

• Canaccord Genuity started Smartsheet as Buy with a $23 price target.
• Jefferies started it as Buy with a $25 price target.
• Morgan Stanley initiated it with an Overweight rating and a $24 target.
• RBC Capital Markets initiated it as Outperform with a $24 price target.
• SunTrust Robinson Humphrey started Smartsheet as Buy.
• William Blair started it as Outperform.
• JPMorgan issued an Overweight rating and a $22 price target.

Shares of Smartsheet were last seen up about 2% at $20.52, with a post-IPO range of $14.50 to $169.75.