topstockalerts
Sep 8, 10:20 PM
Freedom Capital downgraded Doximity to Hold from Buy, while raising its price target to
$27 from
$24, following fiscal Q1 results that exceeded Wall Street expectations. Management increased its full-year revenue outlook but lowered FY2027 EBITDA guidance to
$319 million at the midpoint, from
$329 million, as the company steps up spending on AI computing and product development.
Analyst Gene Mannheimer said the quarter strengthens the revenue case for Doximity’s AI strategy, with AI-powered search contracts showing early traction and pharmaceutical budgets potentially stabilizing after a period of weakness. However, the increased investment is expected to pressure margins, limiting the near-term earnings benefit from stronger revenue.
Mannheimer said the market is balancing the promising early performance of AI search against signs of weakening in Doximity’s core business, which Freedom Capital attributes partly to increasing competition from Epic and OpenEvidence.
$DOCS
