Shares of DocuSign (NASDAQ: DOCU) have already climbed 250% over the past year, but will surge to near all-time highs over the coming 12 months. That's according to Morgan Stanley analyst Stan Zlotsky. On Monday, Zlotsky upgraded DocuSign's stock to overweight (buy) from equal weight (hold), with a price target of $260. That represents potential gains of nearly 20% over the stock's closing price on Friday of about $218. Image source: DocuSign. Zlotsky pointed to a recent pullback for the digital-signature and contract-management platform, which dropped 28% from recent highs following a general decline in technology stocks, creating an attractive entry point for investors. Only a small percentage of stocks have actually benefited from the pandemic, and DocuSign is clearly one of them. Consumers are loath to participate in face-to-face meetings unless absolutely necessary, and customers are unlikely to return to the manual signing process once they try DocuSign's electronic signature solutions. Zlotsky believes this trend will continue. "Strong fundamentals coupled with more durable COVID-19 tailwinds make the DocuSign story more compelling than ever," he wrote in a note to clients. Will DocuSign's stock price hit $260? The evidence suggests that Zlotsky is right on the money. Revenue growth accelerated to 45% year over year in the second quarter, after generating 39% growth in Q1. DocuSign already controls about 70% of the e-signature market, and the pandemic has generated healthy tailwinds for all things digital. As the adoption of online document signing and contract management gains steam, DocuSign's revenue could continue to rise sharply as the company draws more customers into its ecosystem. This suggests that the demand for its services will only increase, so the potential for its shares to hit $260 in the coming year is not only plausible, but seems likely -- and it could happen even sooner than many investors expect. 10 stocks we like better than DocuSignWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and DocuSign wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 Danny Vena owns shares of DocuSign. The Motley Fool owns shares of and recommends DocuSign. The Motley Fool has a disclosure policy.Source