Doximity: Strengthening Engagement, Attractive Valuation, and Supportive Pharma Ad Tailwinds Underscore Buy Rating

In a report released today, Craig Hettenbach from Morgan Stanley maintained a Buy rating on Doximity, with a price target of $65.00.

Craig Hettenbach has given his Buy rating due to a combination of factors that, in his view, position Doximity for attractive risk‑reward. He expects Doximity to deliver at least modest upside to consensus in the near term, noting that his revenue growth forecast for the current quarter is already above the market’s and may still be conservative. He also points to a clear acceleration in platform activity—reflected in stronger web traffic and app downloads—suggesting that engagement trends are strengthening, which should support both monetization and future growth. In addition, checks across the healthcare marketer landscape indicate that digital spending by pharma and healthcare professionals is likely to grow toward the higher end of the mid‑ to high‑single‑digit range in 2026, which should reinforce Doximity’s revenue trajectory.

Craig Hettenbach’s rating is based on the view that Doximity’s value proposition to clients remains compelling, as evidenced by strong return on investment and continued share gains despite competitive noise. He sees the current valuation as particularly appealing, with the stock trading toward the low end of its historical range and at a significant enterprise value discount relative to a key private competitor, even though Doximity generates much higher revenue and superior profitability. He also identifies an opportunity for management to reshape the narrative around its AI product, DoxGPT, by disclosing more detailed user metrics and highlighting how tools like Pathway Medical are deepening engagement. Combined with a more supportive macro backdrop for pharma advertising, including increased budgets tied to new drug launches in areas such as GLP‑1s, immunology, and pain, these elements underpin his conviction that the shares warrant a Buy rating.

In another report released today, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $42.00 price target.