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Investing.com - Raymond (NSE:RYMD) James raised its price target on Doximity Inc (NYSE:DOCS) to $75.00 from $65.00 on Friday, while maintaining an Outperform rating on the healthcare technology company. According to InvestingPro data, analyst targets for the stock range from $50 to $80, with the company currently trading at a P/E ratio of 48.6x.
The upgrade follows Doximity’s fiscal first-quarter results, which showed an impressive top-line beat and above-consensus outlook, despite what Raymond James characterized as conservative guidance for the second half of the year. The company maintains exceptional gross profit margins of 90.2% and has achieved revenue growth of nearly 20% over the last twelve months.
Raymond James expressed encouragement about Doximity’s mid-year buying trends, particularly noting the breadth of customer engagement and the impact of the company’s customer portal, which has opened up the small and medium-sized business (SMB) channel with bookings up 100%.
The investment firm suggested these factors set the stage for continued "beat and raise" performance in the fiscal second half, while also highlighting that new product launches like Scribe and the Pathways acquisition establish a broader physician engagement opportunity for Doximity.
Raymond James noted that while monetization of these new initiatives will take time to develop, the firm ultimately believes Doximity’s increasing importance to physicians will enhance the company’s durable growth profile. Supporting this outlook, InvestingPro data shows the company maintains a strong financial health score of "GREAT" and holds more cash than debt on its balance sheet.
In other recent news, Doximity’s first-quarter fiscal 2026 performance surpassed expectations, with a 4.5% revenue beat and an 11% higher EBITDA than anticipated, according to Evercore ISI. Following this strong performance, Evercore ISI raised its price target for Doximity to $75 while maintaining an Outperform rating. Wells Fargo (NYSE:WFC) also adjusted its price target for the company, increasing it to $62 from $55, citing factors such as a strong drug pipeline and the rollout of AI Scribe. Additionally, Leerink Partners reiterated its Outperform rating and set a $73 price target ahead of Doximity’s earnings report, expressing confidence in the company’s revenue growth and margin expansion.
Wells Fargo maintained its Equal Weight rating, noting that clients plan to increase their Doximity budgets by 16% for the calendar year 2025, with notable growth projections for the latter half of the year. These developments highlight the positive outlook from various analysts on Doximity’s financial and operational performance. The consistent ratings and target adjustments reflect the company’s ongoing appeal to investors, driven by strategic initiatives and strong market positioning.
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