Piper Sandler raised its price target on Doximity Inc (NYSE:DOCS) to $42 from $40 on Thursday and maintained an Overweight rating, even as the stock trades around $25.15 - close to its 52-week low of $23.66. The firm’s decision follows a product demonstration of Doximity’s artificial intelligence toolset led by CEO Jeff Tangney, which highlighted DoxGPT and related AI capabilities.
Investment research available through InvestingPro indicates that Doximity appears undervalued relative to its Fair Value. The same analysis notes that the company holds more cash than debt on its balance sheet and reports gross profit margins near 90%, metrics that the research suggests could support continued investment in AI initiatives.
Piper Sandler’s analyst participation in last week’s demo informed the firm’s updated target. The report also references three distinguishing features the firm identified for Doximity; however, the specific attributes were not detailed in the information provided here.
Operationally, Doximity’s fiscal third-quarter results showed revenue and EBITDA that exceeded guidance and consensus estimates by $4.6 million and $7.9 million, respectively. Those outperformance figures stand in contrast to a variety of analyst reactions that reflect differing views on the company’s near-term trajectory.
Several brokerages have adjusted their outlooks recently. BMO Capital lowered its price target to $25 and kept a Market Perform rating, citing near-term headwinds. At an earlier point, Piper Sandler had revised its price target to $40 and attributed that adjustment to slower bookings in recent quarters. Mizuho trimmed its price target to $34, pointing to delays in pharmaceutical marketing budgets while expecting an eventual acceleration later in the year. In a different stance, Canaccord Genuity upgraded Doximity from Hold to Buy but reduced its price target to $34, characterizing the market’s reaction to the earnings report as an overreaction tied to short-term issues.
The mix of analyst moves and the company’s reported metrics underscore divergent perspectives among sell-side firms: some are placing greater weight on Doximity’s AI investments, cash position, and margin profile, while others are focused on near-term booking trends and marketing spend cycles in pharmaceuticals. Investors seeking deeper analysis on DOCS and more than 1,400 other U.S. equities can consult the comprehensive Pro Research Report referenced in the InvestingPro materials.
Note on available information - Certain items referenced in analyst commentary were cited without detailed lists or attribute descriptions in the materials provided; those specifics are not available here.