Wells Fargo Upgrades DocuSign (DOCU) Stock, Raises PT

DocuSign, Inc. (NASDAQ:DOCU) is one of the 10 software stocks analysts are upgrading. On June 13, Wells Fargo analyst Michael Turrin upped the company’s stock to “Equal Weight” from “Underweight,” lifting the price objective to $80 from the previous target of $67. As per the firm, the investors are required to be selective during the summer in software. That being said, it opines that the H2 of the year can see a rebound as macro noise dissipates and seasonal buying behavior takes the front seat.

Wells Fargo stated that the expectations are now more reasonable after the underwhelming Q1 2026 results. As per the firm, DocuSign, Inc. (NASDAQ:DOCU) has a relatively undemanding multiple. In Q1 2026, the company saw FCF of $227.8 million as compared to $232.1 million in the same period of the previous year. For the quarter ending July 31, 2025, DocuSign, Inc. (NASDAQ:DOCU) expects total revenue of between $777 million – $781 million and subscription revenue of $760 million – $764 million.

For the full year revenue, the annual guidance midpoint has been increased by $22 million, implying the combination of Q1 strength and an expected neutral rather than a negative YoY FX impact. This was partially offset by the headwind from additional bookings prudence for the broader economic environment.

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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