Doximity downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Jessica Tassan downgraded Doximity to Neutral from Overweight with a price target of $36, down from $38. The analyst sees “developing risk” to the company’s fiscal 2024 guidance. The firm is concerned about the $35.3M mid-year upsell burden embedded in Doximity’s fiscal 2024 revenue guidance. This burden will fall almost entirely on Newsfeed, where current traffic may not be able to support it, the analyst tells investors in a research note. As such, Piper considers the stock fairly valued at current levels.