Citi Stays Bullish on DocuSign, Inc. (DOCU) with IAM Upside

On Tuesday, Citi analysts reiterated their Buy rating on DocuSign, Inc. (NASDAQ:DOCU), maintaining the price target of $115. An analysis of the software results in the first quarter and the expansion of product offerings influenced the move.

Over the last few days, the company has increasingly become everyone’s favorite. From Stronger-than-anticipated revenue gains and boosting Intelligent Agreement Management monetization, the reasons are many. What’s truly noteworthy is the return from the company’s Identity and Access Management (IAM) adoption and advanced web traffic data. These two factors are anticipated to contribute the most to the strong quarterly performance.

Is Docusign Inc. (DOCU) the Best Enterprise Software Stock to Buy Now?

A software engineer in front of a computer screen, typing code to build the company’s electronic signature software.

Despite steady operating profit margins for FY2026, driven by IAM investment-related and customer cloud migration-associated expenses, analysts have a positive outlook for earnings due to IAM opportunities, operating leverage, and deeper market potential.

Citizens JMP and JMP, too, have maintained an Outperform rating on DocuSign, Inc. (NASDAQ:DOCU), reflecting enhanced analyst sentiment.

DocuSign, Inc. (NASDAQ:DOCU) is a California-based electronic signature solution provider with a presence in the United States and internationally. A pioneer in the development of eSignature, the company markets its offerings through direct and partner-assisted sales, along with digital self-service purchasing. With over a billion users, the company has repeatedly made it to the list of Fortune 500 Companies.

While we acknowledge the potential of DOCU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DOCU and that has 100x upside potential, check out our report about this cheapest AI stock.

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