Morgan Stanley Issues Pessimistic Forecast for Doximity (NASDAQ:DOCS) Stock Price

Doximity (NASDAQ:DOCS) had its price target decreased by research analysts at Morgan Stanley from $65.00 to $49.00 in a note issued to investors on Friday, Marketbeat reports. The brokerage currently has an “overweight” rating on the stock. Morgan Stanley’s price objective points to a potential upside of 76.55% from the stock’s previous close.

DOCS has been the subject of a number of other research reports. Evercore reissued an “outperform” rating on shares of Doximity in a report on Thursday, January 8th. Needham & Company LLC decreased their target price on Doximity from $75.00 to $55.00 and set a “buy” rating on the stock in a research report on Friday. BMO Capital Markets initiated coverage on Doximity in a research note on Thursday, November 13th. They set a “market perform” rating and a $55.00 target price for the company. Barclays assumed coverage on shares of Doximity in a report on Monday, December 8th. They issued an “overweight” rating and a $63.00 target price for the company. Finally, The Goldman Sachs Group raised shares of Doximity from a “neutral” rating to a “buy” rating and set a $49.00 price target on the stock in a report on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $51.39.

Doximity Trading Down 16.7%

NASDAQ DOCS opened at $27.75 on Friday. The firm’s 50 day simple moving average is $42.69 and its 200 day simple moving average is $56.68. The firm has a market capitalization of $5.23 billion, a price-to-earnings ratio of 27.75, a P/E/G ratio of 4.10 and a beta of 1.39. Doximity has a 1 year low of $23.66 and a 1 year high of $85.21.

Doximity (NASDAQ:DOCS) last announced its quarterly earnings data on Thursday, February 5th. The company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.45 by $0.01. Doximity had a net margin of 36.60% and a return on equity of 21.75%. During the same quarter in the prior year, the company earned $0.45 earnings per share. The company’s revenue for the quarter was up 9.8% compared to the same quarter last year. On average, equities research analysts forecast that Doximity will post 0.99 earnings per share for the current year.

Doximity announced that its Board of Directors has approved a share buyback plan on Thursday, February 5th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Synergy Asset Management LLC grew its holdings in Doximity by 100.0% during the 3rd quarter. Synergy Asset Management LLC now owns 604,502 shares of the company’s stock worth $44,219,000 after acquiring an additional 302,251 shares during the last quarter. Liontrust Investment Partners LLP raised its stake in shares of Doximity by 1,189.9% during the second quarter. Liontrust Investment Partners LLP now owns 272,065 shares of the company’s stock valued at $16,688,000 after acquiring an additional 250,973 shares during the last quarter. Aubrey Capital Management Ltd acquired a new position in shares of Doximity during the third quarter worth $4,572,000. SG Americas Securities LLC grew its stake in shares of Doximity by 335.9% in the third quarter. SG Americas Securities LLC now owns 52,993 shares of the company’s stock worth $3,876,000 after purchasing an additional 40,837 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Doximity in the second quarter worth $1,628,000. Institutional investors own 87.19% of the company’s stock.

Key Stories Impacting Doximity

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Q3 results beat consensus on both revenue and EPS and the company highlighted record engagement and early AI product adoption — positives for long‑term monetization. Read More.
• Positive Sentiment: Board authorized a $500 million buyback (up to ~8% of shares), which signals management believes the stock is undervalued and should support shares over time. Read More.
• Positive Sentiment: Product recognition: Doximity ranked #1 in KLAS telehealth video platform for the 5th consecutive year — supportive for competitive positioning in telehealth and workflow products. Read More.
• Neutral Sentiment: Several sell‑side firms cut price targets (Truist, BTIG, Needham, Morgan Stanley) but largely kept buy/overweight ratings; JPMorgan moved to neutral with a lower target — analysts remain mixed on near‑term growth while some still see upside. Read More.
• Negative Sentiment: Management lowered FY26 revenue guidance and Q4 revenue guidance came in below Street expectations; guidance cut plus margin compression were cited as the main reasons for the sharp after‑hours decline. Read More.
• Negative Sentiment: Management flagged pharma budget delays and a cautious outlook that could weigh on near‑term revenue cadence; investors reacted to weaker forward visibility. Read More.

About Doximity

Doximity, Inc, headquartered in San Francisco, California, operates the leading professional medical network for healthcare professionals in the United States. Founded in 2011 by Jeff Tangney and Shari Buck, the company set out to create a secure digital environment where physicians, nurse practitioners and physician assistants can collaborate, share information and stay current with clinical news. Doximity went public in June 2021 and trades on the NASDAQ under the ticker symbol “DOCS.”

The core offering of Doximity is its HIPAA-compliant communication platform, which includes a secure messaging system, digital fax services and telehealth capabilities.