What happened

Shares of DocuSign (NASDAQ:DOCU) climbed 2.9% on Thursday, even as the Dow Jones Industrial Average (DJINDICES:^DJI) fell 1.4%, following bullish comments by analysts. 

So what

Wedbush analyst Daniel Ives reiterated his "outperform" rating on DocuSign's stock and boosted his target price from $165 to $240. Meanwhile, JMP Securities analyst Patrick Walravens also repeated his belief that DocuSign's stock will outperform the market, and he, too, raised his price forecast, from $150 to $233. Ives' and Walravens' new targets represent potential gains for investors of roughly 13% and 10%, respectively, based on DocuSign's closing price of $212.42.

A digital bull is climbing an upwardly sloping stock chart.

DocuSign's shares rose on Thursday after two analysts lifted their price estimates. Image source: Getty Images.

Both analysts say the coronavirus pandemic -- and the corresponding trend toward remote work -- is boosting demand for DocuSign's digital agreement technology.

Now what

DocuSign's software is helping businesses digitalize their paper-based processes. Its cloud-based e-signature software and ancillary services help companies create, sign, and manage contracts digitally. This provides a host of benefits, including increased security and efficiency and significantly lower costs.

The COVID-19 crisis and related social distancing measures are making digital agreement services more important than ever before -- and DocuSign stands to benefit perhaps more than any other company.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.