Intel stock spikes after report of possible US government stake
On Friday, Evercore ISI reduced its price target on Doximity Inc (NYSE:DOCS) to $50 from the previous $60, while maintaining an "In Line" rating. Currently trading at $58.45, the company commands a market capitalization of approximately $11 billion. According to InvestingPro data, the stock is trading near its Fair Value, with analyst targets ranging from $55 to $88. The firm’s analysis indicated that Doximity’s fourth quarter showed robust growth in new products, with approximately 100% growth in Point of Care (PoC) and formulary channels, estimated to bring in around $27 million. The company maintains impressive gross profit margins of 90.2% and has achieved revenue growth of nearly 20% over the last twelve months. However, despite this performance, Evercore ISI cited potential policy uncertainty affecting pharmaceutical companies as a reason for a more cautious revenue outlook for fiscal year 2026. InvestingPro subscribers can access 13 additional key insights about Doximity’s financial health and growth prospects.
Doximity’s management has suggested that revenue guidance may start at the lower end of the typical market growth rate of 5-7%, plus a likely deceleration in PoC and Formulary growth due to increasing scale. This caution stems from the unclear policy environment’s impact on pharmaceutical advertising spending. Evercore ISI adjusted their revenue projections for Doximity for FY26 accordingly, anticipating volatility in the near term until there is more clarity on drug pricing policies.
The revised price target of $50 is based on a 25 times calendar year 2026 EBITDA and 33 times price-to-earnings ratio. Despite acknowledging Doximity as a structural share winner in its market, Evercore ISI has removed the company from the Tactical Outperform List due to the short-term risks posed by potential policy changes. The firm believes these factors warrant a more conservative stance on the stock for the immediate future.
In other recent news, Doximity Inc. reported strong fourth-quarter earnings for fiscal year 2025, surpassing Wall Street expectations. The company achieved earnings per share (EPS) of $0.38, exceeding the projected $0.27, and generated revenue of $138.3 million, which was above the anticipated $134.03 million. Doximity also reported a 17% year-over-year increase in quarterly revenue and a 20% rise in full-year revenue to $570.4 million. Despite these positive results, the company provided a cautious outlook due to macroeconomic uncertainties. Looking ahead, Doximity projects revenue for FY2026 to be between $619 million and $631 million, indicating a 10% growth. The company also plans to increase investments in AI technologies. Additionally, during an earnings call, analysts focused on the impact of macroeconomic factors, while executives highlighted strong client interest in AI-powered solutions.
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