Doximity initiated with an Equal Weight at Stephens

Stephens initiated coverage of Doximity (DOCS) with an Equal Weight rating and $55 price target Doximity runs the “leading digital platform for doctors” and is executing on multiple avenues of growth, though it has “settled into a low-to-mid-teens growth profile,” the analyst tells investors. The firm believes the current valuation presumes revenue growth will re-accelerate based on the self-serve marketplace increasing up-sell/cross-sell and new product successes and while it sees potential for EBITDA outperformance, the firm lacks “the visibility and conviction to model above-consensus growth and further margin expansion” as a base case, the analyst tells investors.