Robert W. Baird analyst Vikram Kesavabhotla maintained a Buy rating on Doximity (DOCS – Research Report) on May 16 and set a price target of $31.00.
Vikram Kesavabhotla’s rating is based on a range of positive indicators for Doximity’s stock. Notably, the company has exceeded expectations for the fourth fiscal quarter of 2024, with both revenue and adjusted EBITDA surpassing consensus estimates. Moreover, Doximity’s guidance for the first quarter of fiscal year 2025 also stands above consensus projections, indicating a robust start to the year. Kesavabhotla also underscores the platform’s growing user engagement, evidenced by an increase in Quarterly Active Workflow users, and the platform’s improved visibility at the beginning of the year. This is complemented by optimistic feedback regarding return on investment studies and the development of a new Client Portal, reinforcing the positive outlook.
Despite certain areas that may provoke discussion, such as revenue growth and adjusted EBITDA margin guidance for fiscal year 2025, Kesavabhotla believes that these concerns are mitigated by what seems to be a conservative investor sentiment prior to the latest financial update. He suggests that the overall information provided should be sufficient to uphold the stock’s performance, especially considering the company’s enhanced execution over recent quarters. The combination of beating forecasts, positive future guidance, and the continuous improvement in operational performance forms the basis for Kesavabhotla’s Buy rating on Doximity’s stock.
Kesavabhotla covers the Healthcare sector, focusing on stocks such as R1 RCM, Teladoc, and Hims & Hers Health. According to TipRanks, Kesavabhotla has an average return of -4.1% and a 37.21% success rate on recommended stocks.
In another report released on May 17, Canaccord Genuity also maintained a Buy rating on the stock with a $34.00 price target.
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Doximity (DOCS) Company Description:
Doximity Inc is a digital platform for U.S. medical professionals. Its cloud-based platform provides members with tools specifically built for medical professionals, enabling them to collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers.
