DocuSign (DOCU) - Get Report is set for a strong third quarter, continuing the online authentication company's promising trend from Q2, RBC Capital said in a note, citing channel checks. 

RBC Analyst Alex Zukin affirmed an outperform rating on DocuSign. He lifted its price target on the San Francisco company to $93 a share from $80, indicating 28% potential upside from the stock's Friday closing price. 

Zukin said that the company's DocuSign Negotiate product was recently released on Salesforce's App Exchange, representing a "meaningful upsell opportunity to customers of DocuSign for Salesforce."

"We see a company with a large, sustainable leadership position in a newer, underpenetrated total addressable market capable of sustaining durable growth," Zukin said.

"[Both] the e-signature and broader `system of agreement' provide one of the most tangible value propositions (removal of paper-based processes) in an organization's digital-transformation journey," Zukin wrote. 

RBC estimates that the company's third-quarter revenue guidance, $237 million to $241 million, is conservative. RBC sees revenue of $248.5 million vs. Wall Street's consensus of $240 million. 

Meanwhile, DocuSign guided for third-quarter billings between $260 million and $270 million, while RBC is expecting $287.3 million, a 45% year-over-year increase. 

The firm estimates an addressable market opportunity of $25 billion for DocuSign, while industry analysts estimate that today's market totals only $1 billion to $1.5 billion. 

"DocuSign is expanding its product platform beyond its core e-signature functionality to serve the broader 'system of agreement,'" Zukin wrote.

To this end, DocuSign recently acquired SpringCM, a vendor in the contract life-cycle management market," Zukin wrote. "There is a largely untapped opportunity to sell SpringCM to DocuSign's base of 500,000-plus customers at what we estimate to be a 10%-20% price increase, on average."

DocuSign shares are down 2% at $69.80 at last check Monday.