Raymond James analyst Brian Peterson maintained a Buy rating on Doximity today and set a price target of $65.00.
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Brian Peterson has given his Buy rating due to a combination of factors that highlight Doximity’s strong potential for growth and value. The recent decline in share price post-F2Q results has created an attractive risk/reward scenario, with shares trading at 25x free cash flow, which Peterson finds compelling. Despite concerns about seasonality and guidance, Peterson believes that Doximity’s long-term growth prospects are improving, supported by consistent growth in digital budgets, increased workflow adoption, and multi-product expansion.
Furthermore, Doximity’s potential for AI monetization and shifts from direct-to-consumer to healthcare professionals could sustain above-market growth, even though these factors are not heavily weighted in the current model. The company possesses a strong moat, robust margins, and a capable management team, making it a solid long-term investment. Peterson also notes that the recent share price pullback presents a discount compared to the vertical software group, historically a buying opportunity, and he is confident in a double-digit growth trajectory moving forward.
In another report released on November 18, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $52.00 price target.