Piper Sandler has reduced its price objective for Doximity Inc to $40.00 from $70.00, while maintaining an Overweight rating on the stock. The company’s quoted share price of $33.32 is trading close to its 52-week low of $32.66, and technical indicators show the shares are in oversold territory based on relative strength index measures.
The research team attributed the revision primarily to slower-than-expected bookings in the second and third fiscal quarters, noting that calendar year 2026 has "off to a slow start." Management and analysts are seeing a deceleration in addressable market growth to roughly 5 percent, and Piper Sandler observed that sales cycles are lengthening as pharmaceutical customers react to ongoing macroeconomic volatility.
While the near-term sales backdrop was described as bleak, the firm signaled continued confidence in the underlying product and network dynamics. Piper Sandler highlighted the strength of the DOCS platform and the compounding value of Doximity’s professional network. The research note also pointed to substantive product-usage improvements, including exponential adoption of DoxGPT and record-high diversified utilization in the third fiscal quarter, which the firm said indicate a healthy platform and an engaged user base.
Those operational positives sit alongside reported financials for the third quarter of fiscal 2026. Doximity posted earnings per share of $0.46, narrowly beating a $0.45 consensus. Revenue for the quarter came in at $185.1 million versus an expected $181.63 million. Despite the slight outperformance on the top and bottom lines, analysts remain cautious about the company’s forward growth trajectory.
Several other sell-side firms have adjusted their views in recent trading. Needham lowered its price target to $55 from $75 while keeping a Buy rating, citing mixed results and weaker guidance for the fourth quarter. Truist Securities trimmed its target to $37 from $62, noting growth concerns despite characterizing the third-quarter performance as strong relative to consensus. JPMorgan moved its rating to Neutral from Underweight but also reduced its price target to $40 from $62, pointing to policy-driven uncertainties that are affecting client budgets.
The combination of slower bookings, a softer market-growth outlook, and extended sales cycles has translated into downward pressure on price targets even where quarterly results modestly exceeded expectations. Investors will likely be watching forthcoming guidance and customer-budget signals from pharmaceutical clients to gauge whether recent usage momentum in products like DoxGPT converts into sustained revenue growth.
Key takeaways
- Piper Sandler cut its price target on Doximity to $40 from $70 but left an Overweight rating in place.
- Sales and bookings slowed in recent fiscal quarters, with market growth seen slowing to about 5 percent and longer sales cycles among pharmaceutical customers.
- Operational positives include rapid DoxGPT adoption and record diversified utilization in fiscal third quarter; fiscal Q3 results slightly beat consensus with EPS of $0.46 and revenue of $185.1 million.
Implications
The report underscores tensions between near-term demand softness among pharma buyers and encouraging engagement metrics on the platform. The spotlight remains on whether product adoption will translate into sustained revenue expansion amid elongated sales processes.