DocuSign's (DOCU) fiscal Q3 results exceeded expectations as customer usage improved, but continued growth depends on ramping adoption of IAM services, RBC Capital Markets said in a note Friday.

The company expects major growth from its IAM services, which are now available to more customers, but "it remains early days," according to RBC.

"We view most of the outperformance coming from results in Q3 as more of a function of the demand environment stabilizing. To get comfortable underwriting acceleration, we want to see more proofpoints regarding IAM adoption," RBC analysts said in the note.

The company has significantly increased its fiscal 2025 revenue forecast, showing confidence in continued strong performance, the investment firm said.

RBC raised its price target to $90 from $57, and maintained a sector perform rating on the stock.