Analyst Stan Berenshteyn of Wells Fargo maintained a Hold rating on Doximity, boosting the price target to $62.00.
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Stan Berenshteyn has given his Hold rating due to a combination of factors including Doximity’s fluctuating growth rates over the past few years and the current valuation of the stock. While there is positive momentum expected from product-led growth and a strong drug pipeline, the valuation remains a concern, keeping the rating at Hold.
Additionally, the recent introduction of the AI Scribe has shown promise in reversing declining monthly active users, which is a positive sign for future ad revenue growth. However, the potential margin pressures from AI Scribe’s compute costs and the uncertainty in how it compares to competitors add caution. Despite these challenges, the solid cadence of drug approvals and potential for upward revisions in guidance provide some optimism for near-term performance.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $60.00 price target.