Update shared on04 Oct 2025
Fair value Increased 1.21%Doximity's analyst price target has increased from $68.67 to $69.50 per share. This change reflects analysts' positive view on strong business momentum, promising AI initiatives, and a conservative outlook for fiscal 2026 revenue growth.
Analyst Commentary
Recent analyst updates reveal growing optimism surrounding Doximity’s trajectory, particularly in the context of its strong business performance and focused initiatives in artificial intelligence. However, some note areas of caution as the company executes its growth strategy.
Bullish Takeaways- Analysts highlight solid business momentum, noting that recent quarterly results consistently beat expectations and provided higher guidance for the future.
- Ongoing investments in AI, such as the launch of AI Scribe and the acquisition of Pathway AI, are viewed as enhancing platform engagement and expanding monetization opportunities.
- There is confidence that fiscal 2026 guidance is conservative, with expectations for the formulary business to achieve at least mid-single-digit growth and support overall revenue targets.
- Doximity’s business model is seen as highly enviable, featuring strong incremental margins that are expected to deliver significant earnings upside if revenue growth outpaces forecasts.
- Some analysts maintain cautious ratings, reflecting concerns about valuation levels following recent share price appreciation.
- There is caution regarding the growth potential of the remaining pharma business, as modest increases may be required to reach the midpoint of revenue outlook.
- Execution risks remain, particularly around integrating new AI solutions and fully capitalizing on recent acquisitions.
What's in the News
- From April 1, 2025 to June 30, 2025, Doximity repurchased 2,266,003 shares for $122.33 million, completing the buyback of 4,141,229 shares (2.21% of shares outstanding) under the buyback plan announced on May 16, 2024 (Key Developments).
- Doximity provided revenue guidance for the fiscal second quarter ending September 30, 2025, expecting revenue between $157 million and $158 million (Key Developments).
- The company also projected revenue for the fiscal year ending March 31, 2026, in the range of $628 million to $636 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from $68.67 to $69.50 per share.
- The Discount Rate increased modestly from 7.82% to 7.89%.
- The Revenue Growth forecast inched up fractionally, shifting from 10.97% to 10.99%.
- Net Profit Margin edged down minimally, changing from 34.81% to 34.80%.
- Future P/E ratio estimates have increased from 57.99x to 58.82x.
Disclaimer
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