Leerink Partners reiterates Outperform rating on Doximity stock ahead of earnings

Published 04/08/2025, 18:00
Leerink Partners reiterates Outperform rating on Doximity stock ahead of earnings

Investing.com - Leerink Partners has reiterated an Outperform rating and $73.00 price target on Doximity Inc (NYSE:DOCS) ahead of the company’s fiscal first-quarter 2026 earnings report, due in three days. According to InvestingPro data, the stock currently trades above its Fair Value, with analyst targets ranging from $50 to $80.

The research firm expressed confidence in Doximity’s revenue growth and margin expansion potential, noting that the company’s value proposition of efficiently connecting pharmaceutical companies with prescribers continues to resonate with customers. This confidence appears well-founded, as InvestingPro data shows impressive revenue growth of 20% and industry-leading gross margins of 90.2%.

While Doximity’s fiscal 2026 guidance was described as "more conservative than expected," Leerink Partners anticipates upside to financial projections as the year progresses and maintains strong belief in the company’s multi-year growth trajectory.

The firm highlighted Doximity’s new AI Scribe solution as an example of how the company is expanding its offerings to increase physician engagement, which subsequently drives better return on investment for biopharmaceutical customers.

Leerink Partners also noted that the risk environment in the pharmaceutical sector has stabilized somewhat, potentially improving decision-making speed, and pointed to encouraging signals from IQVIA’s Technology & Analytics Solutions segment regarding biopharmaceutical community spending trends.

In other recent news, Doximity Inc has been the subject of several analyst updates and evaluations. Evercore ISI upgraded Doximity’s stock to Outperform, raising its price target to $70, based on the company’s conservative fiscal year 2026 guidance and expected growth in its PoC/Formulary business. BTIG also upgraded the stock from Neutral to Buy, with a new price target of $80, citing strong demand for high-quality software-as-a-service solutions in the bio-pharma industry. Meanwhile, Wells Fargo (NYSE:WFC) maintained its Equal Weight rating with a $55 price target, highlighting growth in Doximity’s client base that outpaces the industry average. The firm noted that clients plan to increase their Doximity budgets by 16% for 2025, though the pharmaceutical advertising market remains uncertain. Raymond (NSE:RYMD) James observed positive trends in healthcare provider engagement, suggesting that Doximity could benefit from investments in innovative sales and marketing channels. These developments offer a glimpse into the evolving dynamics affecting Doximity’s market position and growth prospects.

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