Doximity: Rebounding Pharma Momentum, Emerging AI Upside, and Attractive Valuation Support Renewed Growth Buy Thesis

BTIG analyst David Larsen has maintained their bullish stance on DOCS stock, giving a Buy rating today.

David Larsen has given his Buy rating due to a combination of factors that, in his view, position Doximity for renewed growth despite near‑term guidance headwinds. He notes that while management issued a softer outlook for the upcoming quarter because pharma customers deployed budgets more cautiously and delayed some deals, January produced the strongest pharma bookings growth since the IPO, suggesting momentum is already rebounding. Larsen also highlights that the resolution of uncertainty around Most Favored Nation drug pricing for most major pharma manufacturers, along with the industry moving past broader policy and budgeting disruptions, should support a re-acceleration of revenue as the year progresses.

In addition, Larsen points to strong underlying customer metrics and product traction as key supports for the Buy rating. Net dollar retention remains robust, particularly among Doximity’s largest customers, and the number of high‑revenue accounts continues to grow, indicating deepening enterprise relationships. He emphasizes surging engagement and early, meaningful adoption of Doximity’s AI offerings by both prescribers and health systems, with AI revenue not yet embedded in guidance and therefore representing potential upside. Combined with a valuation he views as attractive relative to long‑term EBITDA prospects and management’s expectation of exiting calendar 2026 with double‑digit growth, these elements underpin his positive stance on the stock.

DOCS’s price has also changed dramatically for the past six months – from $57.930 to $33.320, which is a -42.48% drop .