BofA Securities has trimmed its 12-month price target for Doximity Inc. to $70.00 from $82.00, while leaving the stock on a Buy recommendation. The revised target remains well above Doximity's current trading level of $38.63, which sits close to the company's 52-week low of $37.33.
The change in valuation follows the firm's 15th quarterly survey of pharmaceutical advertising, which delivered a mixed read for Doximity. Despite a slightly weaker macro backdrop, the company retained its leading market share in the channels surveyed.
BofA analyst Allen Lutz highlighted a rotation of some advertising dollars among the industry's largest firms toward the healthcare provider channel, though he characterized the latest quarter as more muted than the previous one. The firm reported that the traditional fourth-quarter budget flush was marginally lower year-over-year and that outlooks for digital advertising budgets in 2026 were somewhat weak. Investors should note that Doximity is scheduled to report earnings in six days, on February 5.
BofA linked these trends in part to caution in the market stemming from the FDA's stance on direct-to-consumer advertising. Even so, the bank projects Doximity's revenue to expand in the mid-teens in fiscal 2027. That growth expectation is expected to be driven by customer uptake of new modules and by continued shifts in allocation between direct-to-consumer and healthcare provider advertising budgets.
The firm's revenue outlook is set against Doximity's high reported profitability and recent revenue performance: the company posted gross profit margins of 90.2% and delivered revenue growth of 20.2% over the last twelve months, figures BofA used in its modeling.
BofA said the cut to the price target principally reflects compression in software peer valuation multiples. On a calendar-year 2026 basis, the bank now values Doximity at roughly 31 times EV/EBITDA, versus about 37 times in its prior view.
Independent analysis referenced in the firm's write-up indicates Doximity is trading below its Fair Value per that assessment. The firm noted supplemental research materials are available to subscribers that expand on the valuation and relative positioning.
Other analyst coverage
Several other brokerages recently published views that underscore continued analyst interest. Raymond James reiterated a Strong Buy stance with a $65.00 price target, pointing to Doximity's physician-first orientation and competitive position in AI-assisted healthcare tools, and noting the company's reach across more than 300 large health systems as a strategic asset despite growing competition from firms including OpenAI.
RBC Capital initiated coverage with an Outperform rating and a $59.00 price target, citing steady double-digit growth and robust margins as supporting fundamentals. Truist Securities upgraded the stock from Hold to Buy, assigning a $62.00 target and highlighting the company’s ability to grab market share in the healthcare-provider segment of pharmaceutical digital marketing. Raymond James additionally flagged stable pharmaceutical budgets as a tailwind for healthcare provider digital advertising.
Takeaway
BofA's move reduces the headline valuation on Doximity, principally reflecting a re-rating of software peers and a near-term softening in pharma digital budgets. Nevertheless, the bank continues to expect material revenue expansion led by new product adoption and shifting ad allocations, and a number of other brokerages maintain favorable ratings and targets that reflect confidence in the company’s strategic positioning and margin profile.