DocuSign (DOCU) is showing progress with its Intelligent Agreement Management platform, while needing consistent execution to meet Wall Street expectations and bolster investor confidence in its AI strategy, Wedbush said Tuesday in a report.

"Solid" fiscal Q2 results last week showed the average platform deal size increased, and more than half of enterprise account representatives closed at least one deal, the report said.

DocuSign also raised its fiscal 2026 outlook, citing "further momentum" from current business trends, Wedbush said.

Still, "we remain on the sidelines as it will take time and consistency" to meet market expectations, the report said.

Wedbush maintained its neutral rating on DocuSign's stock with an $85 price target.

DocuSign shares fell 1.8% in recent Tuesday trading.

Price: 80.29, Change: -1.44, Percent Change: -1.76