In a report released today, Allen Lutz from Bank of America Securities reiterated a Hold rating on Doximity (DOCS – Research Report), with a price target of $75.00.
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Allen Lutz has given his Hold rating due to a combination of factors that include Doximity’s recent financial performance and future guidance. The company reported a strong third quarter, with revenue and EBITDA significantly surpassing market expectations, driven in part by contributions from Point of Care and Formulary segments. Despite this impressive performance, the guidance for the next quarter suggests a considerable slowdown in growth, indicating a conservative outlook from the management.
Additionally, while the fourth quarter projections are above consensus estimates, the implied EBITDA margins are lower compared to the third quarter. This suggests potential challenges ahead, despite the company’s current strong performance. The analyst maintains a Neutral stance, reflecting both the recent financial successes and the cautious guidance for future periods, awaiting further insights from the upcoming financial call.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DOCS in relation to earlier this year.