Piper Sandler Raises Doximity Price Target on Confidence in AI Tools

Core Viewpoint - Piper Sandler has raised its price target on Doximity Inc. to $42 from $40 while maintaining an Overweight rating, indicating a positive outlook on the company's stock performance [1] Group 1: Doximity's AI Tool Suite - Insights from a demonstration led by CEO Jeff Tangney highlighted the strengths of Doximity's AI tool suite, particularly DoxGPT, which is noted for its integration within the Doximity ecosystem, the quality and accuracy of clinical reference responses, and a strong evidence base supporting its medical AI capabilities [2] - A new feature called PeerCheck allows healthcare professionals to efficiently transition from clinical questions to citations and original sources, enhancing the utility of DoxGPT [2] Group 2: Market Potential and Stock Valuation - As AI tools like Scribe and DoxGPT become integrated into Doximity's workflow platform, there is an expectation of increased adoption among individual healthcare professionals and enterprise contracts with hospitals and health systems, creating a virtuous cycle [3] - Piper Sandler believes the market is undervaluing DoxGPT's potential, especially following the fiscal third-quarter 2026 EPS results, leading to an updated price target of $42 based on a 20.0x multiple applied to slightly higher calendar 2027 adjusted EBITDA estimates [4]