What Makes Docusign (DOCU) Attractive

Docusign Incorporated (NASDAQ:DOCU) is one of the 12 oversold software stocks to invest in.

On February 13, Stephen Bersey from HSBC reiterated his Hold rating on Docusign Incorporated (NASDAQ:DOCU). In the process, the analyst lowered the target price from $77 to $53.

Bersey attributed his downward revision to meager growth prospects and a lower expected valuation multiple for the company. Following the adjustment, his estimate leads to a revised upside potential of more than 18% at the prevailing level.

On January 5, RBC Capital reaffirmed a Sector Perform rating on Docusign Incorporated (NASDAQ:DOCU). The firm reduced its price target for the stock from $95 to $70, which offers an upside of more than 56%.

RBC Capital anticipates AI-linked catalysts to become evident during 2026, which would benefit companies that have positioned themselves for AI adoption at an enterprise level. On the other hand, businesses that do not seem well prepared for such adoption will continue to struggle with AI-related threats.

DocuSign Inc (NASDAQ:DOCU) delivers electronic signature solutions across the globe, which has resulted in the transformation of agreement workflows. It has curtailed documentation processing time through digitization and automation. The company also offers contract lifecycle management services and AI-enabled analytics for its worldwide users.

While we acknowledge the potential of DOCU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.