Sprouts Farmers Market closes $600 million revolving credit facility
On Monday, Leerink Partners adjusted its outlook on Doximity Inc (NYSE:DOCS) shares, reducing the price target from $90.00 to $78.00. Currently trading at $59.19, the stock has delivered an impressive 153% return over the past year. Despite the price target cut, Leerink kept an Outperform rating on the stock, expressing continued confidence in the company’s growth prospects. According to InvestingPro, 15 analysts have recently revised their earnings expectations upward for the upcoming period.
Leerink’s analyst highlighted Doximity’s performance in fiscal year 2025, noting significant achievements in revenue and adjusted EBITDA. With an impressive gross profit margin of 90.19% and a "GREAT" Financial Health Score from InvestingPro, the firm’s position is strengthened by pharmaceutical companies increasingly utilizing the Doximity platform, which offers efficient and targeted access to doctors. This trend is seen as a positive reflection of the company’s value proposition to the pharmaceutical industry.
The analyst pointed out that large pharmaceutical firms consider digital advertising on platforms like Doximity to be a more efficient investment with a higher return on investment (ROI). This perception is expected to favor Doximity in both positive and negative market conditions for the pharmaceutical industry.
Regarding the company’s upcoming guidance, Leerink anticipates a broad range of potential outcomes. The firm referenced Doximity’s history of surpassing its own guidance and suggested that a conservative initial forecast for fiscal year 2026 would not be unexpected. Leerink believes that Doximity’s specific growth opportunities are likely to remain strong.
In closing, the analyst reiterated the Outperform rating while adjusting the 12-month price target. The new target is based on approximately 40 times Leerink’s calendar year 2026 EBITDA estimate, a slight decrease from the previous multiple of around 42.5 times.
In other recent news, Doximity Inc has seen mixed analyst actions regarding its stock price target. Jefferies analyst Glen Santangelo raised the price target for Doximity to $88 from $64, maintaining a Buy recommendation. This decision was based on Doximity’s strong third-quarter results, which showed growth exceeding 25% and an EBITDA margin above 60%. Santangelo’s analysis suggests confidence in Doximity’s continued growth and profitability, despite the stock’s recent gains. Conversely, Truist Securities adjusted its price target for Doximity to $58 from $65, retaining a Hold rating. Truist’s analyst, Jailendra Singh, expressed a more cautious view due to economic uncertainties impacting Doximity’s markets. Singh highlighted that while Doximity is expected to report fiscal fourth-quarter growth slightly above guidance, the company may continue providing conservative financial guidance. These recent developments reflect differing perspectives on Doximity’s future performance amidst broader economic conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.