Morgan Stanley Views Doximity (DOCS) Underperformance as Attractive Entry Point Amid Strong Engagement

Core Viewpoint - Doximity Inc. is considered an oversold stock with potential for investment, supported by recent upgrades from Morgan Stanley and Barclays, highlighting strong user engagement and conservative estimates as attractive entry points for investors [1][2][3]. Group 1: Analyst Upgrades - Morgan Stanley upgraded Doximity from Equal Weight to Overweight with a price target increase from $62 to $65, citing the stock's underperformance as inconsistent with business checks and growing user engagement [1]. - Barclays initiated coverage of Doximity with an Overweight rating and a price target of $63, while maintaining a Neutral stance on the broader US healthcare tech sector [2]. Group 2: User Engagement and AI Integration - Doximity's strategic focus on AI has led to significant user engagement, with AI Scribe users nearly tripling from FQ1 2026 to FQ2 2026 [3]. - The integration of Pathway's medical data sets and AI models into the DoxGPT feature has provided physicians access to over 2,000 medical journals and drug references, contributing to a 50% quarter-over-quarter increase in AI-related Quality Adjusted Users (QAUs) [3]. Group 3: Company Overview - Doximity operates as a digital platform for medical professionals in the US, with potential as an investment, although some analysts suggest other AI stocks may offer greater upside potential [4].