While Docusign Inc (NASDAQ:DOCU) seems to have the right strategy to generate double-digit growth in the long term, fiscal 2027 is likely to be "a transition year" for the company, according to BofA Securities.

The Docusign Analyst: Analyst Matt Bullock reinstated coverage with an Underperform rating and price target of $52.

The Docusign Thesis: The company's revenue growth has stagnated over the past 10 quarters, with the eSignature market approaching maturity, Bullock said in the note.

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Although Docusign is now "pivoting into a full-scale agreement management platform," AI giants like OpenAI and Anthropic have entered this space "with document-focused AI tooling of their own," he added.

While the company has what it takes to establish itself as a dominant player in intelligent agreement management (IAM), "an inflection is not immediately apparent," the analyst stated.

Due to this, there is "limited near-term upside for shares even as they trade at a discount," he further wrote.

DOCU Price Action: Docusign shares were up 0.80% at $47.64 at the time of publication on Tuesday, according to Benzinga Pro data.

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