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Potential Regulatory Changes in Pharmaceutical Advertising Boost Doximity’s Prospects

Potential Regulatory Changes in Pharmaceutical Advertising Boost Doximity’s Prospects

Leerink Partners analyst Michael Cherny has reiterated their bullish stance on DOCS stock, giving a Buy rating on June 2.

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Michael Cherny has given his Buy rating due to a combination of factors, primarily focusing on the potential regulatory changes in the pharmaceutical advertising landscape. The Trump Administration, along with Robert F. Kennedy Jr., is exploring measures that could make direct-to-consumer (DTC) advertising less appealing for pharmaceutical companies by increasing disclosure requirements and removing tax deductibility.
These potential changes could lead to a shift in advertising budgets towards platforms like Doximity, which would benefit significantly if such regulations were implemented. Although these changes are not imminent, the possibility of them occurring presents a substantial upside for Doximity. Consequently, Cherny maintains an optimistic outlook on Doximity’s stock, reiterating an Outperform rating based on these prospective developments.

Cherny covers the Healthcare sector, focusing on stocks such as Align Tech, Cardinal Health, and CVS Health. According to TipRanks, Cherny has an average return of 4.0% and a 53.90% success rate on recommended stocks.

In another report released on June 2, BTIG also upgraded the stock to a Buy with a $80.00 price target.

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