Investing.com -- William Blair raised DocuSign (NASDAQ:DOCU) to Outperform in a note Monday, highlighting optimism around the company’s Intelligent Agreement Management (IAM) platform and its potential to reaccelerate growth into double digits.
“We are bullish on the market opportunity ahead for the company’s Intelligent Agreement Management platform (IAM) and the ability of this new product cycle to reaccelerate DocuSign’s growth back to the double digits,” William Blair analysts wrote.
The firm sees IAM driving meaningful upsell opportunities while making customer relationships stickier beyond DocuSign’s traditional e-signature offerings.
IAM has already shown strong early traction, according to William Blair. In the company’s most recent quarter, IAM represented a high-single-digit percent of deal volume for the direct channel and over 20% of direct new customer lands.
By fiscal 2026, DocuSign expects IAM to represent a low-double-digit percent of its subscription book of business, up from the low-single digits in fiscal 2025.
Beyond IAM, William Blair also highlighted DocuSign’s new management team, stating that execution has been strong since leadership changes took place.
The firm is also encouraged by the product investments in product-led growth (PLG), AI, enterprise solutions, and agreement cloud offerings, along with improving retention rates in the core e-signature business.
The firm believes the company’s valuation remains attractive, with DocuSign trading at 16.9x the firm’s calendar 2026 free cash flow estimate. William Blair sees room for margin expansion in fiscal 2027 as revenue growth accelerates, retention improves, and PLG initiatives gain traction.
While macro sensitivity and competition remain risks, William Blair views IAM’s growth potential and DocuSign’s ability to expand beyond e-signatures as key drivers for long-term success.