BTIG analyst David Larsen has maintained their neutral stance on DOCS stock, giving a Hold rating on May 12.
David Larsen’s rating is based on a combination of factors that suggest a cautious outlook for Doximity. Although the company reported strong financial results for the fourth quarter of fiscal year 2025, with revenue and EBITDA exceeding expectations, the guidance for fiscal year 2026 and the first quarter of 2026 fell short of consensus estimates. This conservative guidance reflects potential macroeconomic challenges, including tariffs and regulatory changes that could impact revenue growth.
Despite positive core metrics such as increased article readership and strong net revenue retention rates, Larsen notes that Doximity’s results have been inconsistent and the stock has experienced volatility. Additionally, the company’s valuation is significantly higher than the industry average, which could lead to pressure on the stock if there are any perceived risks of a slowdown. While the company’s earnings power remains strong, the uncertainty in the macroeconomic environment and potential for reduced spending by bio-pharma clients contribute to the Hold rating.
According to TipRanks, Larsen is an analyst with an average return of -10.2% and a 30.77% success rate. Larsen covers the Healthcare sector, focusing on stocks such as DocGo, Progyny, and Healthequity.
In another report released on May 12, Wells Fargo also maintained a Hold rating on the stock with a $55.00 price target.
