Analyst Craig Hettenbach from Morgan Stanley maintained a Hold rating on Doximity (DOCS – Research Report) and increased the price target to $60.00 from $53.00.
Craig Hettenbach has given his Hold rating due to a combination of factors impacting Doximity’s outlook. While the near-term conditions appear strong, there is uncertainty regarding the company’s guidance for FY26, particularly given the macroeconomic risks affecting the pharmaceutical sector, such as tariff issues and disruptions at the FDA. These factors contribute to a lack of clarity for the latter part of the year, prompting a cautious approach.
Additionally, although digital healthcare professional marketing is expected to grow, Doximity’s growth projections slightly exceed industry expectations, which could be a positive sign. However, the reduction in the FDA’s Office of Prescription Drug Promotion staff could lead to delays in drug advertising reviews, adding further uncertainty. As a result, Hettenbach has adjusted the price target from $71 to $60 to reflect these dynamics and the contraction in comparable multiples over recent months.
In another report released on April 10, Truist Financial also maintained a Hold rating on the stock with a $58.00 price target.