Shares of medical professional network Doximity (NYSE:DOCS) fell 6.7% in the morning session after JP Morgan downgraded the stock to 'Underweight' from 'Neutral', citing concerns about its high valuation and uncertainty in advertising trends.
The bank noted that there was limited visibility on digital pharma advertising. Furthermore, JPMorgan pointed out that Doximity traded at a steep premium compared to its peers. While acknowledging that the company's financial profile warranted some premium, the firm highlighted that its enterprise value was 36 times a future earnings measure (EBITDA), well above the 23 times median for similar companies. The brokerage maintained its price target of $62 on the shares.
https://finance.yahoo.com/news/why-doximity-docs-shares-trading-155042543.html
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