Limited clarity on AI pivot - Downgrading to Underperform

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Limited clarity on AI pivot - Downgrading to Underperform

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Doximity Inc

Limited clarity on AI pivot - Downgrading

to Underperform

Rating Change: UNDERPERFORM | PO: 20.00 USD | Price: 20.88 USD

29 June 2026

Making the right investments, but margins may stay weak Equity

We are downgrading Doximity from Buy to Underperform given limited clarity on the

near-term trajectory of revenue/margins and execution risks related to the pivot to AI.

DOCS is the industry leader in pharma advertising to physicians with products including Key Changes

a newsfeed, a telehealth tool, and a new AI assistant for physicians (DoxGPT). We believe (US$) Previous Current

Doximity is making the right strategic investments to compete against emerging AI Inv. Opinion C-1-9 C-3-9

models such as OpenEvidence and OpenAI. However, given the deep pockets of these Inv. Rating BUY UNDERPERFORM

peers and the fact that top 20 pharma already spends significantly with Doximity, we Price Obj. 38.00 20.00

have some concerns around its ability to grow its current allocations as well as 2027E EPS 1.29 1.33

successfully compete for AI dollars. With DOCS’ current EBITDA margin profile near 2028E EPS 1.74 1.59

50%, we think the Street may underappreciate the duration and size of Doximity’s future 2027E EBITDA (m) 327.2 326.5

investments. While shares are inexpensive, we see downside risk to consensus over the 2028E EBITDA (m) 369.7 324.3

next few years. We are reducing our PO to $20, ~9x CY26E EV/EBITDA versus 20x prior.

Pharma is already over indexed to Doximity AllenResearchLutz,AnalystCFA

Doximity has been a material share gainer over the last five years and pharma is BofAS+1 646 855 4380

meaningfully over-indexed to Doximity relative to emerging competitors like allen.lutz@bofa.com

OpenEvidence.