Doximity downgraded at Guggenheim after ‘another disappointing’ outlook

As previously reported, Guggenheim downgraded Doximity to Neutral from Buy and removed the firm’s previous price target on the shares on “the heels of another disappointing guide.” While the company “nicely beat” all metrics in fiscal Q1, they guided Q2 below consensus, which marks the fifth time the out quarter had to come down, and lowered FY24 revenue and EBITDA guidance “only 2 months following their investor day where they reiterated guidance and gave new LT targets,” the analyst tells investors. Given the uncertainly on when and if there is a reacceleration of growth and “the credibility discount investors are likely to apply,” the firm does not see a compelling case to “buy the dip,” the analyst added.