Piper Sandler raised its price target on Doximity Inc. (NYSE: DOCS) to $42 from $40 while maintaining an Overweight rating.
The analyst cited insights from a CEO-led demonstration of Doximity’s AI tool suite hosted by CEO Jeff Tangney. According to Piper Sandler, DoxGPT stands out for three key reasons: its integration within the broader Doximity ecosystem, the quality and accuracy of its clinical reference responses, and the evidence base supporting its medical AI capabilities. This includes PeerCheck, a recently introduced feature that enables healthcare professionals to move from clinical question to citation and original source efficiently.
As AI tools such as Scribe and DoxGPT become embedded within Doximity’s workflow platform, the firm expects a virtuous cycle of increased adoption across individual healthcare professionals and enterprise hospital and health system contracts.
Piper Sandler believes the market is underappreciating the potential of DoxGPT and views the stock as undervalued following fiscal third-quarter 2026 EPS results. The updated $42 price target is based on an unchanged 20.0x multiple applied to slightly higher calendar 2027 adjusted EBITDA estimates.
