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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Doximity Inc (NYSE:DOCS) to $62.00 from $55.00 on Monday, while maintaining an Equal Weight rating on the stock. The company, currently trading at $58.18, has demonstrated strong financial health with a 90.2% gross profit margin and impressive returns, according to InvestingPro data.
The firm cited several factors supporting its more optimistic valuation, including the strength of the drug pipeline, the rollout of AI Scribe, and positive commercial pharmaceutical activity indicated by recent key opinion leader calls.
Wells Fargo analysts noted that Doximity has experienced significant fluctuations in annual growth over the past four years, reporting growth of 22.0% in FY23, 13.5% in FY24, 20.0% in FY25, and a guided midpoint of 10.0% (range of 9%-11%) for FY26E.
The investment bank has adjusted its forecast to the top end of Doximity’s guidance for both the first quarter and full fiscal year 2026, reflecting increased confidence in the company’s near-term performance.
Despite the higher price target, Wells Fargo maintained its Equal Weight rating, suggesting the "growth debate remains front and center" for the physician-focused digital platform.
In other recent news, Doximity has been the focus of several analyst reports as it approaches its fiscal first-quarter 2026 earnings announcement. Leerink Partners reiterated an Outperform rating with a $73.00 price target, expressing confidence in Doximity’s revenue growth and margin expansion. Evercore ISI also upgraded Doximity to Outperform, raising its price target to $70.00, citing the company’s conservative fiscal year 2026 guidance and projected growth in its PoC/Formulary business. Meanwhile, Wells Fargo maintained an Equal Weight rating and a $55.00 price target, noting that clients plan to increase their budgets for Doximity by 16% for calendar year 2025.
Wells Fargo highlighted that Doximity’s growth rates are surpassing industry averages, driven by new drug approvals and budget reallocations. The firm acknowledged the uncertain pharmaceutical advertising market but noted the shift towards digital advertising as a positive trend for Doximity. These developments reflect a mix of optimism and caution among analysts regarding Doximity’s financial prospects and market position.
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