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Investing.com - Wells Fargo (NYSE:WFC) has reiterated its Equal Weight rating and $55.00 price target on Doximity Inc (NYSE:DOCS), currently trading at $59.38, citing expert insights on pharmaceutical advertising trends affecting the healthcare professional network. According to InvestingPro data, analyst targets range from $50 to $80, with the stock showing strong momentum after gaining over 110% in the past year.
The research firm notes that clients plan to increase their Doximity budgets by 16% for calendar year 2025, with quarterly growth projections of 18% for Q2, 21% for Q3, and 14% for Q4. This builds on the company’s impressive 20% revenue growth over the last twelve months, reaching $570.4 million. This represents an improvement from previous expectations, particularly for the second half of the year, though visibility remains lower than anticipated at 70-80% for Q3 and 30% for Q4.
Budget increases are partially attributed to pharmaceutical companies pulling forward already-approved campaigns to mitigate potential risks from legislation that could remove tax exemptions for marketing dollars in 2026. This acceleration is helping offset headwinds from downsized FDA content approval teams, which has slowed the release of new advertising content.
The firm highlights potential risks to 2026 advertising budgets, with expert sources suggesting pharmaceutical ad spending could decrease by 10% year-over-year if tax exemptions are eliminated, compared to a baseline growth of 4% if regulations remain unchanged. The drug approval pipeline for 2025 is described as roughly equivalent to the previous year in volume and market potential.
Despite increasing competition in the healthcare professional network space, Wells Fargo reports that Doximity appears positioned to maintain its share of pharmaceutical marketing budgets, with some large health systems reportedly reversing previous restrictions on provider use of the platform. InvestingPro analysis reveals the company’s strong competitive position is supported by exceptional 90.2% gross margins and an overall GREAT financial health score. For deeper insights into Doximity’s financial metrics and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Doximity Inc has been the subject of multiple analyst evaluations and updates. Evercore ISI upgraded Doximity’s stock to Outperform, raising its price target from $50 to $70, based on conservative fiscal year 2026 guidance and anticipated growth in its PoC/Formulary business. On the other hand, Wells Fargo maintained an Equal Weight rating with a $55 price target, citing uncertainties in the pharmaceutical advertising market but noting that Doximity’s clients are experiencing growth rates above the industry average. BTIG also upgraded Doximity from Neutral to Buy, setting a new price target of $80 due to the strong demand for SaaS solutions in the bio-pharma industry. Meanwhile, Goldman Sachs reduced its price target for Doximity to $50 while maintaining a Neutral rating, projecting revenue growth stabilization at 10-11% through fiscal year 2029. Raymond (NSE:RYMD) James highlighted positive trends in healthcare provider engagement, emphasizing the importance of innovative sales and marketing channels for companies like Doximity. These developments reflect a complex landscape of growth potential and market challenges for Doximity Inc.
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