Doximity (DOCS) expects continued softness in pharmaceutical marketing spending through at least fiscal Q1 and Q2, while it will likely benefit from some artificial intelligence revenue contribution in fiscal Q3, RBC Capital Markets said in a note Wednesday.
The brokerage, which hosted investor meetings with the company, said it came away cautious on the company's near-term outlook, but noted greater visibility on opportunities for revenue growth toward H2 of fiscal 2027 and more materially into fiscal 2028 from capturing more spend into its AI tools.
The company believes its AI offering is better positioned with large pharmaceutical partners seeking alternatives to programmatic, biddable advertising models, according to the note.
RBC has an outperform rating on the stock and a $28 price target.
Shares of Doximity were down 3.5% in Thursday trading.
Price: $20.11, Change: $-0.72, Percent Change: -3.46%