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On Friday, Truist Securities updated its stance on Doximity Inc (NYSE:DOCS), reducing the price target from $58.00 to $52.00 while maintaining a Hold rating on the stock. Currently trading at $49.89, Doximity has seen an impressive 146% return over the past year. This adjustment comes as Doximity released its fourth-quarter results, which surpassed consensus expectations, but provided a fiscal year 2026 guidance that fell short of analyst predictions. According to InvestingPro data, analyst targets range from $50 to $88, with 9 analysts recently revising their earnings estimates upward.
The company’s cautious fiscal year 2026 outlook is attributed to macroeconomic uncertainties and challenging year-over-year comparisons. Despite these concerns, Doximity maintains impressive fundamentals, with a remarkable 90.2% gross profit margin and nearly 20% revenue growth in the last twelve months. Truist Securities highlighted that while Doximity has yet to feel the effects of the recent macroeconomic uncertainty, the company anticipates the pharmaceutical healthcare professional (HCP) digital market to grow at the lower end of the projected 5-7% market growth, compared to the 7% growth observed last year.
Doximity expects to grow at approximately twice the market rate despite the anticipated slowdown. The revised price target reflects updates to the financial model based on these projections and the company’s conservative outlook.
The analyst from Truist Securities noted that investor expectations had already factored in a fourth-quarter beat and a conservative revenue outlook for fiscal year 2026 that would still be within the range of consensus estimates. The new price target of $52 represents a recalibration in response to Doximity’s latest earnings report and forward-looking statements.
In summary, the Hold rating indicates that Truist Securities advises investors to maintain their current position in Doximity stock, without advocating for additional buying or selling, following the company’s mixed financial results and guarded forecast for the upcoming fiscal year. InvestingPro analysis indicates the stock is slightly undervalued, with a "GREAT" overall financial health score. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into Doximity’s investment potential.
In other recent news, Doximity Inc. reported robust financial results for the fourth quarter of fiscal year 2025, surpassing Wall Street expectations. The company achieved earnings per share of $0.38, significantly exceeding the projected $0.27, and reported revenue of $138.3 million, which was above the anticipated $134.03 million. Despite these strong earnings, the company provided a cautious outlook for fiscal year 2026 due to macroeconomic uncertainties. Analysts from Raymond (NSE:RYMD) James and Evercore ISI have adjusted their price targets for Doximity, with Raymond James lowering it to $65 while maintaining an Outperform rating, and Evercore ISI reducing it to $50 with an "In Line" rating. Both firms noted potential policy uncertainties affecting the pharmaceutical sector as a factor in their revised outlooks. Doximity’s management highlighted a strong year-over-year revenue increase of 17% in Q4 and emphasized the company’s focus on developing AI technologies as a future growth driver. The company also announced plans to increase investments in AI technologies, which they believe will enhance their offerings and drive long-term efficiency.
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