What Happened?
Shares of medical professional network Doximity (NYSE: DOCS) jumped 3.3% in the afternoon session after the stock's positive momentum continued as a Bank of America analyst reiterated a Buy rating and an $82 price target on the stock.
The analyst noted accelerating growth within healthcare provider budgets and that Doximity was also raising its spending on advertising to these providers. The price target suggested a potential 88% upside from the stock's trading range at the time of the report. Adding to the positive sentiment, the company also launched PeerCheck, a new physician-led model designed for the clinical review of medical AI tools.
After the initial pop the shares cooled down to $45.18, up 3.5% from previous close.
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What Is The Market Telling Us
Doximity’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock gained 37.6% on the news that the company reported strong fourth-quarter results, and handily beat on the revenue, EBITDA, and EPS lines.
Top line growth accelerated by 24% year on year, as the quarter benefited from strong platform engagement with over 610,000 providers using its clinical workflow tools and a 60% sequential growth in AI tool usage. Doximity also provided optimistic EBITDA guidance for the next quarter, which blew past analysts' expectations. Zooming out, we think this was a very good quarter with some key areas of upside.
Doximity is down 15.6% since the beginning of the year, and at $45.18 per share, it is trading 45.7% below its 52-week high of $83.14 from February 2025. Investors who bought $1,000 worth of Doximity’s shares at the IPO in June 2021 would now be looking at an investment worth $852.49.
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