BofA analyst Allen Lutz raised the firm’s price target on Doximity to $45 from $32 and keeps a Neutral rating on the shares. After having conducted a tenth survey on advertising spending, which included 35 respondents with an emphasis on top 20 pharma, the firm notes that results of this quarter’s survey were “significantly stronger than prior surveys across the board” as both overall budgets and digital budgets appear to be inflecting. When customers expect to spend more, the Doximity platform is where manufacturers are spending the most, according to the analyst, who came away from the survey incrementally positive on Doximity’s ability to sustain double digit revenue growth, and potentially more if these trends prove sustainable. However, given the significant multiple increase since early August, the firm thinks the valuation reflects the better outlook, the analyst added.
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