BofA Securities reinstated coverage of DocuSign Inc. (NASDAQ: DOCU) with an Underperform rating and a $52 price target, citing uncertainty around its growth trajectory.
The firm noted that while DocuSign has historically dominated the eSignature market, the segment is now approaching maturity and becoming increasingly commoditized. As a result, the company’s revenue growth has plateaued in the high single-digit range over the past ten quarters.
Against this backdrop, DocuSign is shifting its focus toward becoming a comprehensive agreement management platform. However, BofA highlighted increasing competition from artificial intelligence companies such as OpenAI and Anthropic, which are entering the market with document-focused AI tools.
While the firm acknowledged that DocuSign has the foundational elements to establish itself in intelligent agreement management, it said a clear inflection point in growth is not yet visible.
Given these factors, BofA sees limited near-term upside for the stock, even though it is trading at a discounted valuation.
