Evercore upgrades Doximity, says guidance looks conservative

Investing.com -- Evercore ISI upgraded Doximity to Outperform and raised its price target to $70, saying the digital health platform’s full-year guidance appears cautious and could be exceeded if recent trends in pharmaceutical spending hold.

The firm expects Doximity’s core Pharma business to remain steady next year, helped in part by increased spending on GLP-1 drugs, which it estimates could contribute around $60 million in fiscal 2026.

That would help offset any potential softness in upselling activity and keep revenue in line with the upper end of company guidance.

The company’s point-of-care and formulary products, which nearly doubled revenue in fiscal 2025, are expected to continue growing, though at a slower, more sustainable pace.

Evercore forecasts that segment alone could reach over $140 million in fiscal 2026.

Doximity’s total revenue is estimated to reach about $630 million next year, toward the high end of management’s range of $619 million to $631 million.

If spending patterns remain stable, Evercore sees potential for at least 5% upside to those figures.

The brokerage also cited the company’s high operating leverage. Because of its lean cost structure, modest outperformance in revenue could lead to meaningful growth in earnings.

Evercore estimates adjusted EBITDA could exceed $365 million, compared to the current consensus of around $340 million.

Though the stock is not cheap by traditional metrics, Evercore argued that its strong margins and recurring revenue profile justify a premium, especially when compared with peers.

It also flagged regulatory risks that could affect pharma ad spending but noted that any shift toward digital or provider-focused advertising could benefit Doximity.

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