Doximity (DOCS) is poised to benefit from positive January and February web-traffic trends on its health-care professional marketing portal, even as the broader pharmaceutical spending environment remains "challenging," RBC Capital Markets said Monday in a report.
Additionally, "our updated analysis of user login site traffic data shows continued durability of Doximity's HCP network, despite concurrent competitor strength," and March data may confirm the early-year trend, RBC said.
Rival OpenEvidence still logged more weekly visits than Doximity so far this year, though the gap narrowed from December, the report said. The steadier relative engagement supports Doximity's ability to protect or increase its share of pharma marketing budgets, RBC said.
Pharma budgets remain tight, with some drugmakers keeping spending flat or trimming it, the report said. At the same time, more companies are shifting to quarterly budget reviews, which may help Doximity if clients continue reallocating money toward channels that deliver higher returns, RBC said.
RBC maintained its outperform rating on Doximity stock with a $44 price target.
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