What Happened?
Shares of healthcare professional network Doximity (NYSE: DOCS) jumped 3% in the morning session after Evercore ISI analyst upgraded the stock, citing the company's growth potential.
The investment firm raised its rating on the digital platform for medical professionals to "Outperform" from "In Line" and significantly increased its price target from $50 to $70 per share. Evercore ISI highlighted its belief that Doximity has provided conservative guidance for its 2026 fiscal year. The analyst firm projects strong growth in Doximity's pharmaceutical-related revenue, anticipating it will reach approximately $535 million in fiscal 2026. This optimism is partly fueled by continued spending related to GLP-1 drugs, a class of medications used to treat diabetes and obesity, which is expected to contribute around $60 million to revenue.
After the initial pop the shares cooled down to $62.91, up 2.2% from previous close.
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What Is The Market Telling Us
Doximity’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Doximity is up 17.5% since the beginning of the year, but at $62.91 per share, it is still trading 24.3% below its 52-week high of $83.14 from February 2025. Investors who bought $1,000 worth of Doximity’s shares at the IPO in June 2021 would now be looking at an investment worth $1,187.
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