Doximity (DOCS) Stock Forecast & Price Target

Doximity has demonstrated impressive growth potential, highlighted by a more than 100% increase in its POC and formulary offerings during the recent buying season. The company is positioned for further revenue expansion as approximately 35% of its growth derives from renewals and upselling to existing customers, alongside a strong Net Revenue Retention (NRR) rate exceeding 113%. Furthermore, the potential for acquiring new healthcare professional marketing customers in the SMB pharma segment is bolstered by the increased utilization of Doximity’s portal, which enables flexible access to marketing programs tailored to smaller budgets.

Doximity Inc. is experiencing a significant decline in user engagement, as evidenced by a 76% year-over-year drop in cumulative unique site visits to its marketing portal between December and January, raising concerns about reduced usage among its customer base. Additionally, downward guidance revisions from pharmaceutical clients due to the uncertain economic climate indicate potential challenges ahead for Doximity's core healthcare professional (HCP) marketing revenue, suggesting a slowdown in growth. Compounding these issues, Doximity's stock remains at a relatively high valuation compared to its software peers, leaving it vulnerable to volatility if the company fails to meet investor expectations.