Bank of America Securities analyst Allen Lutz has maintained their bullish stance on DOCS stock, giving a Buy rating yesterday.
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Allen Lutz has given his Buy rating due to a combination of factors related to the growth potential in Doximity’s market. The conference call with industry experts highlighted that while direct-to-consumer (DTC) advertising remains stable, the growth in healthcare provider (HCP) budgets is accelerating faster. This trend positions Doximity well to benefit from the increasing allocation towards HCP advertising, especially as pharmaceutical companies seek to mitigate risks associated with DTC spending.
Furthermore, the anticipated 12.5% year-over-year growth in HCP budgets in 2026, compared to a slower growth rate for DTC, underscores the shifting focus towards HCP channels. The experts also noted that digital video initiatives, a key area for Doximity, are driving substantial growth. As HCP platform usage rises, with more active users, the potential for increased ad revenue supports the Buy rating. The flexibility in budget execution, moving towards ‘just in time’ spending, further enhances Doximity’s prospects in capturing market share.
In another report released yesterday, Morgan Stanley also upgraded the stock to a Buy with a $65.00 price target.