Bank of America Securities analyst Allen Lutz reiterated a Hold rating on Doximity today and set a price target of $62.00.
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Allen Lutz has given his Hold rating due to a combination of factors influencing Doximity’s current market position. The survey results indicate a positive outlook for Doximity, with top pharmaceutical companies planning to increase their spending on the platform, marking the highest growth in over two years. Additionally, mid-year upsells have shown significant improvement compared to the previous year and quarter, and digital marketing budgets have seen a notable reacceleration.
However, despite these positive indicators, there are concerns that temper the overall enthusiasm. The total marketing budgets for the top pharmaceutical companies have decreased, marking the worst expectation in 13 quarters, likely due to macroeconomic factors such as tariffs. Furthermore, while new module growth remains strong, it is not accelerating, and a new competitor, OpenEvidence, is gaining traction among top pharmaceutical clients. These mixed signals lead to a cautious approach, justifying the Hold rating.
In another report released on July 23, Wells Fargo also maintained a Hold rating on the stock with a $55.00 price target.