Doximity upgraded at Raymond James on improving long-term growth visibility

 

• Raymond James upgraded Doximity (DOCS) to strong buy from outperform, saying that the digital platform for doctors with a "current risk/reward at 25x [free cash flow] looking too compelling to ignore."
• The firm, however, lowered its target price to $65 from $75 (40% upside based on Nov. 20 close).
• Analyst Brian Peterson notes that while some investors have concerns about seasonality and guidance philosophy, the company has also been ramping up workflow adoption, multi-product expansion, and client portal benefits.
• Peterson said that Doximity has seen annual growth rates from 2023 to 2025 of 15%-18%, with quarterly growth rates in that period experiencing peaks in the mid-20% range and troughing in the mid-single digit range. This, he added, is a sign that "seasonal shifts are not indicative of longer-term growth rates."
• "...we're comfortable underwriting a double-digit growth trajectory for the foreseeable future," Peterson wrote.

https://www.msn.com/en-us/money/markets/doximity-upgraded-at-raymond-james-on-improving-long-term-growth-visibility/ar-AA1QU3yl