Wells Fargo analyst Stan Berenshteyn maintained a Hold rating on Doximity (DOCS – Research Report) today and set a price target of $55.00.
Stan Berenshteyn has given his Hold rating due to a combination of factors affecting Doximity’s current market position. One significant reason is the slow start in FDA drug approvals, which has been the slowest since 2019. This sluggish beginning has led to more cautious positioning ahead of the company’s fourth-quarter results, prompting a trimming of estimates in line with guidance. Additionally, the shift in bookings mix towards PoC and Formulary modules, which typically have a slower uptake, further supports a conservative outlook.
However, there is potential upside in the second half of the year due to the FDA’s aggressive timeline to integrate AI in drug approval processes. This could accelerate the approval cadence and provide a tailwind for Doximity. Despite this, there are concerns about app usage data, which has shown a decline in monthly active users over the past year. This trend may limit Doximity’s ability to raise prices, adding to the cautious stance. Overall, these mixed signals contribute to the Hold rating as the company navigates these uncertainties.
In another report released on April 24, Morgan Stanley also maintained a Hold rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DOCS in relation to earlier this year.