BofA Securities raises Doximity stock price target on stable pharma budgets

Published 25/06/2025, 11:02
© Reuters.

Investing.com - BofA Securities raised its price target on Doximity Inc (NYSE:DOCS) to $62.00 from $55.00 on Tuesday, while maintaining a Neutral rating on the healthcare technology company.

The price target increase follows a New York City investor meeting with Doximity’s CFO Anna Bryson and Vice President of Investor Relations Perry Gold, where company executives discussed pharma budgets, artificial intelligence investments, proposed direct-to-consumer legislation, and platform usage trends.

BofA Securities expressed increased confidence about the stability of pharmaceutical budgets through the end of 2025, noting growing optimism around Doximity’s opportunity to leverage artificial intelligence across its platform, while acknowledging these efforts are still in early stages.

The research firm highlighted that Doximity is appropriately balancing margin stability with accretive investments, which contributed to the more positive outlook reflected in the higher price target.

The new $62 price objective represents approximately 34 times calendar year 2025 enterprise value to EBITDA multiple, up from approximately 30 times previously, reflecting BofA’s "growing confidence in the business" despite maintaining caution on broader macroeconomic dynamics.

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