Leerink Partners raises Doximity stock price target to $79 on strong results

Published 08/08/2025, 12:12
Leerink Partners raises Doximity stock price target to $79 on strong results

Investing.com - Leerink Partners raised its price target on Doximity Inc (NYSE:DOCS) to $79.00 from $73.00 while maintaining an Outperform rating following the company’s quarterly earnings report. The company, currently valued at $11 billion, has demonstrated impressive financial metrics, including a 90.2% gross profit margin and approximately 20% revenue growth over the last twelve months, according to InvestingPro data.

The research firm cited Doximity’s "clean revenue beat with strong EBITDA dropdown" and noted that the company raised its annual guidance, including fiscal second-quarter 2026 guidance that exceeded consensus estimates.

Leerink highlighted Doximity’s ability to leverage its platform for consistent upsell opportunities, mentioning the ongoing portal roll-out and continued new product introductions that enhance physician experience and return on investment potential for pharmaceutical sponsors.

The higher price target reflects an increase in the valuation multiple to approximately 40x calendar year 2026 EV/EBITDA from about 37.5x previously, which Leerink attributed to higher growth expectations and "a somewhat more optimistic view of the health of the end market."

Leerink Partners maintained that Doximity’s "unique competitive position and unique profit profile" warrant a premium valuation multiple in the market.

In other recent news, Doximity’s fiscal first-quarter results have garnered significant attention, with strong performance exceeding expectations. The company’s revenue surpassed estimates by 4.5%, and its EBITDA was 11% higher than anticipated, as noted by Evercore ISI. Following these results, Raymond (NSE:RYMD) James raised its price target for Doximity to $75, maintaining an Outperform rating, highlighting the impressive top-line beat and above-consensus outlook. Evercore ISI also adjusted its price target to $75, reflecting the robust fiscal performance. Additionally, Wells Fargo (NYSE:WFC) increased its price target to $62, citing positive developments such as the strength of the drug pipeline and the rollout of AI Scribe. Meanwhile, Leerink Partners reiterated an Outperform rating with a $73 price target, expressing confidence in Doximity’s revenue growth and margin expansion potential. These developments indicate a positive sentiment among analysts regarding Doximity’s recent performance and future prospects.

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