In a report released today, Craig Hettenbach from Morgan Stanley maintained a Buy rating on Doximity, with a price target of $65.00.
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Craig Hettenbach has given his Buy rating due to a combination of factors that, in his view, create an attractive upside opportunity for Doximity’s stock. He argues that the recent share price weakness has pushed expectations too low, especially when contrasted with his constructive outlook on the company’s underlying business and the broader strength in pharma digital advertising to healthcare professionals. He also notes that while investors are focused on near-term guidance that appears soft, they may be underestimating the company’s full-year growth trajectory and the potential benefits from new AI-driven products and acquisitions.
Hettenbach further believes the market is overly discounting competitive risks from OpenEvidence and that Doximity has room to better communicate the strength of its platform, user engagement, and monetization strategy. He highlights that Doximity’s current valuation reflects a disproportionate focus on what might go wrong, rather than its scale, profitability, and free cash flow characteristics. With upcoming quarterly results seen as a potential positive catalyst to reset sentiment and clarify the growth story, he views the current setup as one of the most compelling long opportunities in his coverage universe over the next couple of years.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $82.00 price target.