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On Monday, Mizuho (NYSE:MFG) Securities analyst Steven Valiquette adjusted the price target on Doximity Inc (NYSE:DOCS) stock, increasing it to $65.00 from the previous $55.00, while maintaining a Neutral rating on the company’s shares. The revision follows Doximity’s reported third consecutive quarter of exceeding expectations, with fiscal third-quarter 2025 revenue reaching $168 million, a 25% year-over-year increase. This figure surpassed both the Street’s and the company’s own guidance, which ranged between $152 million and $153 million. According to InvestingPro data, 12 analysts have revised their earnings upward for the upcoming period, with price targets ranging from $48 to $90.
Doximity’s strong performance extended to its EBITDA, which at $102 million showed a 39% year-over-year growth, outperforming the guidance of $83 million to $84 million. The company’s success is attributed to increased engagement with physicians using its application, which now features an enhanced newsfeed and productivity tools. These improvements have led to a larger portion of digital marketing expenditures from existing pharmaceutical clients, especially among the top 20. InvestingPro data reveals impressive gross profit margins of 90.19% and an overall "GREAT" financial health score, indicating robust operational efficiency.
The company highlighted its robust net revenue retention (NRR) rate, which stood at 117% on a trailing twelve-month basis. Notably, within its top 20 pharmaceutical customers, the NRR was even higher at 122%. Valiquette pointed out that Doximity’s new pharmaceutical client portal, which allows clients to monitor their marketing spend return on investment almost in real-time, is a significant contributor to the company’s accelerating revenue growth.
In light of these positive developments, Valiquette has raised the price target for Doximity. The company’s consistent performance and strategic enhancements to its platform suggest a strong uptake of its services among its client base, leading to the increased revenue figures and a positive outlook from Mizuho Securities.
In other recent news, Doximity Inc has been the focus of several analyst upgrades and target price revisions following a strong third quarter performance. Piper Sandler analyst Sean Wieland upgraded Doximity’s stock rating from Neutral to Overweight, raising the price target to $78, citing impressive revenue growth and promising bookings momentum. Similarly, KeyBanc Capital Markets maintained an Overweight rating with a $65 target on Doximity, highlighting significant top- and bottom-line growth.
Needham also increased its price target for Doximity to $82 and maintained a Buy rating, pointing to significant upselling and a robust margin profile. On the other hand, Canaccord Genuity adjusted its price target for Doximity to $71, maintaining a Hold rating, despite acknowledging the company’s strong performance and raised guidance. Lastly, Leerink Partners upgraded Doximity’s stock rating from Market Perform to Outperform, raising the price target to $90, citing core growth trends and new product developments as key drivers.
These recent developments underline the growing confidence in Doximity’s financial performance and future prospects. It’s important to note that these ratings and price targets are based on the analysis of the respective firms and should be considered as part of a broader investment strategy.
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