Doximity stock price target raised to $75 from $66 at BofA Securities

Published 12/09/2025, 11:08
Doximity stock price target raised to $75 from $66 at BofA Securities

Investing.com - BofA Securities has raised its price target on Doximity Inc (NYSE:DOCS) to $75.00 from $66.00 while maintaining a Neutral rating on the stock. The company, currently trading at $70.26 with a market capitalization of $13.16 billion, has demonstrated impressive momentum with an 83.83% return over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels.

The price target increase follows the U.S. Food and Drug Administration’s recent announcement of reforms to direct-to-consumer (DTC) pharmaceutical advertisements, which will increase disclosure requirements for pharmaceutical advertisers. Doximity maintains strong fundamentals with an exceptional 90.14% gross profit margin and has received an overall ’GREAT’ financial health rating from InvestingPro, which offers 14 additional exclusive insights about the company.

The FDA’s new directive aims to enhance safety and risk disclosures in pharmaceutical advertising across all media platforms, including both traditional and digital channels.

BofA Securities notes that pharmaceutical companies have operated through a regulatory loophole since 1997 that allowed them to footnote important information such as full contraindications and common precautions rather than including them prominently in advertisements.

Under the new FDA requirements, advertisers will need to present all of this safety information directly within the advertisement itself, eliminating the footnote approach that has been standard practice for nearly three decades.

In other recent news, Doximity Inc. reported impressive first-quarter results for fiscal year 2026, surpassing Wall Street expectations. The company achieved an earnings per share of $0.36, which was 20% higher than the anticipated $0.30. Revenue also exceeded projections, reaching $145.9 million compared to the expected $139.43 million. In addition to strong earnings, Piper Sandler raised its price target for Doximity to $69 from $65, maintaining an Overweight rating. The research firm attributed this increase to Doximity’s advancements in AI and workflow products. Piper Sandler noted that the utilization of the Doximity app has reached record levels, driven by AI innovations such as Doximity AI Scribe and Doximity GPT. These developments reflect the company’s ongoing efforts to enhance its technological offerings.

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