Software company DocuSign’s (DOCU) stock scored a rating upgrade from Hold to Buy from William Blair, thanks to the optimism about its Intelligent Agreement Management (IAM) platform. Interestingly, the IAM platform is an AI (artificial intelligence)-powered offering that optimizes processes involving agreements. DOCU stock jumped 13.4% on Friday as the electronic signature specialist impressed investors with its upbeat Q4 FY25 results and stated that its IAM platform is witnessing strong traction with its customers.
William Blair Is Optimistic About DocuSign’s IAM Portfolio
William Blair analyst Jake Roberge is bullish on the market opportunity for DocuSign’s IAM portfolio and the ability of this new product cycle to reaccelerate the company’s growth back to the double digits. Roberge highlighted that in Q4 FY25, IAM accounted for a high-single-digit percent of deal volume for the company’s direct channel and more than 20% of direct new customer deals.
Roberge added that while it is still early days for the IAM platform, DocuSign expects IAM to represent a low-double-digit percentage of its subscription recurring revenue business by the end of Fiscal 2026, up from a low-single-digit percentage in the prior fiscal year.
William Blair Sees Multiple Positives for DOCU Stock
Aside from the potential for the IAM platform, Roberge is also bullish on DOCU stock due to the solid execution under the new management. Plus, he noted DocuSign’s recent product investments and sees more opportunities ahead, including AI/agentic AI, enterprise, and other agreement cloud offerings.
The analyst also highlighted the improvement in usage/utilization for DocuSign’s core e-signature business, stabilizing competition, and the potential for solid margin expansion in Fiscal 2027 and beyond as growth reaccelerates, retention improves, and sales efficiency increases.
Like Roberge, Citi analyst Tyler Radke is also bullish on DocuSign stock. The four-star analyst increased the price target for DocuSign stock to $115 from $113 and reiterated a Buy rating. Radke noted that the company continues to show signs of re-accelerating growth trends. He sees the potential for continued international expansion and operating leverage in the years ahead. Radke added that DocuSign’s accelerating billings suggest an upside into Fiscal 2026.
Is DocuSign a Good Stock to Buy?
While Roberge and Radke are bullish on DOCU stock, several analysts remain on the sidelines due to many reasons, including macro challenges, light guidance, and valuation.
Overall, with 12 Holds, three Buys, and one Sell recommendation, DOCU stock scores a Hold consensus rating. The average DOCU stock price target of $96.92 implies 13% upside potential. DOCU stock is down 6% year to date.
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