DocuSign is effectively on hold until a new CEO is found, following the sudden departure of Dan Springer in June, according to RBC. The company downgraded the company’s stock to a better performer and lowered its price target to $65 – in line with Friday’s close – from $80. DocuSign stock fell more than 4% in money markets. “We still see a path to accelerated growth, but it requires better sales, new use cases, stronger international traction,” Rishi Jaluria wrote in a note Sunday. especially in newer markets), and greater adoption of CLM and other products”. “These changes take time and can take several quarters, even after a new CEO joins, before we begin to see signs of a successful change.” According to Jaluria, the company also has a series of ongoing enforcement issues that it needs to address. This includes high employee turnover, which is expected to continue without a permanent CEO at the helm, he wrote. “It was clear looking back at DocuSign salespeople that were complacent during COVID, with demand coming to them, as well as benefits from drinks, and did not actively create demand or incentives,” Jaluria said. new use cases”. In addition to these issues, DocuSign is facing a short-term hit that could fall short of Wall Street’s expectations in the coming quarters. This could further widen the reputation gap it has with investors, and will take some time to fill again, Jaluria said. “The fact that DocuSign led to a three-quarter drop in bills in a row, missed its own invoicing guidance, and, in our view, undercut both the average renewal/renewal benefit early, as well as total exposure to mortgages/loans,” Jaluria wrote. “We believe it will take some time for DocuSign to regain its credibility.” DocuSign stock has failed this year, losing more than 56% of its value in that time. Shares are also down 77% over the past 12 months. — Michael Bloom of CNBC contributed to this report.