After a “Noisy” Year, BTIG Initiates DocuSign (DOCU) with a Buy

DocuSign, Inc. (NASDAQ:DOCU) is included among the 10 Cash-Rich Stocks to Buy Now.

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On December 17, BTIG analyst Allan Verkhovski initiated coverage of DocuSign, Inc. (NASDAQ:DOCU) with a Buy rating and an $88 price target. Shares are down 34% from their multi-year high of $107 last December, following what the analyst described as a very “noisy” year. In a research note, he said factors such as the rollout of the DocuGPT agent and the company’s shift to guiding on annual ARR instead of billings, starting next quarter, weighed on the stock. BTIG sees that backdrop as a “great” buying opportunity.

In the third quarter of 2025, the company posted one of its strongest growth quarters over the past two years. Results were driven by steady customer spending on core products and the Intelligent Agreement Management platform, known as IAM. Revenue reached $818 million, up 8% year over year, and billings totaled $829 million, while non-GAAP operating margin came in at 31%. Free cash flow rose to $263 million, which supported a $215 million share repurchase. That marked DocuSign, Inc. (NASDAQ:DOCU)’s largest quarterly buyback to date.

Allan Thygesen, President, CEO & Director, pointed to consistent execution across three strategic priorities. These include meeting demand for IAM and eSignature through an improved go-to-market approach, accelerating platform development and AI innovation, and pushing for higher operational efficiency.

By the end of Q3, more than 25,000 customers had adopted IAM, up from over 10,000 in April. Management expects IAM to account for a low double-digit share of recurring revenue by year-end. IAM is now integrated with platforms such as ChatGPT, Anthropic Claude, Gemini Enterprise, and others. During the quarter, IAM also achieved FedRAMP Moderate and GovRAMP authorization.

DocuSign, Inc. (NASDAQ:DOCU) is a cloud-based platform that allows users to send, sign, and manage legally binding electronic agreements and documents from any device, reducing the need for paper, printing, and scanning.

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Disclosure: None.