Update shared on 01 Nov 2025
Fair value Increased 0.55%Analysts have modestly increased their price target for Doximity, raising the estimate from $70.72 to $71.11 per share. They cite stronger revenue momentum, which is supported by recent upgrades and expectations for higher provider-driven growth.
Analyst Commentary
Analyst opinions on Doximity remain divided, reflecting both growing optimism around the company’s long-term prospects and caution due to market and industry-specific uncertainties. The following summarizes key bullish and bearish takeaways from recent Street research:
Bullish Takeaways- Bullish analysts point to Doximity’s strategic shift toward serving healthcare professionals, which is expected to drive sustained momentum into 2026.
- Recent revenue upgrades suggest stronger execution, further supported by expectations of an above-consensus Q4 “budget flush.”
- Updates to Doximity’s AI strategy and new platform features are seen as enhancing user engagement and future monetization potential.
- Growth is anticipated to accelerate as pharmaceutical advertising budgets move away from direct-to-consumer channels and refocus on provider-driven opportunities.
- Bearish analysts caution that Doximity’s valuation premium compared to peers may not be fully justified given current growth trends.
- Ongoing uncertainty in pharma digital advertising could limit growth visibility and impact revenue consistency.
- There are concerns about volatile advertising spend and potential deceleration in pharma budget allocations to digital channels.
- Some maintain a neutral or underweight view, emphasizing the challenges in forecasting robust growth in the near term despite the recent business momentum.
What's in the News
- Doximity completed a share repurchase of 2,266,003 shares, representing 1.2% of outstanding shares, for $122.33 million between April 1 and June 30, 2025. The total buyback now includes 4,141,229 shares, or 2.21%, for $198.32 million since May 2024 (Key Developments).
- The company issued revenue guidance for the fiscal second quarter ending September 30, 2025, and expects revenue between $157 million and $158 million (Key Developments).
- Doximity projects full-year revenue for the period ending March 31, 2026, to be between $628 million and $636 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Increased slightly from $70.72 to $71.11 per share.
- Discount Rate: Decreased marginally from 7.89% to 7.88%.
- Revenue Growth: Remained nearly unchanged at approximately 10.98%.
- Net Profit Margin: Stayed stable at around 35.41%.
- Future P/E: Increased modestly from 58.81x to 59.13x.
Disclaimer
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