Michael Cherny, an analyst from Leerink Partners, reiterated the Buy rating on Doximity (DOCS – Research Report). The associated price target was lowered to $73.00.
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Michael Cherny’s rating is based on the belief that the recent decline in Doximity’s stock price presents a compelling buying opportunity, despite the company’s conservative guidance. The company’s revenue and profitability performance remain strong, and its integration into pharmaceutical advertising continues to be robust. Although the company’s guidance for FY26 was slightly below expectations, Cherny sees this as a minor setback in light of Doximity’s overall business strength.
Furthermore, Doximity has demonstrated significant momentum with new customer acquisitions and expansions, as evidenced by a high net revenue retention rate. The company’s largest clients are increasing their spending, indicating confidence in Doximity’s offerings. Additionally, the client portal is seen as an undervalued asset that could drive further growth. Despite some macroeconomic uncertainties, Cherny maintains a positive outlook on Doximity’s intrinsic value and profitability, justifying the Buy rating.
In another report released on May 16, Raymond James also maintained a Buy rating on the stock with a $65.00 price target.