Doximity (DOCS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Stan Berenshteyn from Wells Fargo maintained a Hold rating on the stock and has a $55.00 price target.
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Stan Berenshteyn has given his Hold rating due to a combination of factors including Doximity’s recent financial performance and future guidance. The company reported revenues and adjusted EBITDA that surpassed both Wells Fargo Securities and consensus expectations for the fourth quarter. However, the guidance for fiscal year 2026 was slightly below consensus, with revenue projections falling short due to anticipated market growth at the lower end of expectations, influenced by policy uncertainties.
Despite strong fundamentals such as product uptake, AI traction, and share gains, macroeconomic and policy uncertainties pose potential challenges for upselling opportunities, which could impact investor sentiment. Management’s cautious approach towards upsell momentum, coupled with the slow FDA approval process, adds to the uncertainty. While there is notable traction with small and medium-sized businesses and growing demand for AI-optimized programs, these factors are not yet sufficient to warrant a more optimistic rating, leading to the Hold recommendation.