Doximity stock price target raised to $62 by Wells Fargo on AI Scribe rollout

Wells Fargo raised its price target for Doximity (NYSE:DOCS) to $62 from $55, maintaining an Equal Weight rating, citing increased confidence in the company's growth potential driven by its drug pipeline and AI Scribe product, despite past growth fluctuations. Concurrently, healthcare tech peer Veeva Systems (NYSE:VEEV) is trading near its 52-week high, supported by strong Q1 FY26 results and significant client wins with major pharmaceutical companies like Merck, Astellas, and Boehringer Ingelheim, prompting Mizuho and Raymond James to raise their price targets and underscoring Veeva's expanding market leadership.

Analysis

The healthcare technology sector is experiencing positive analyst sentiment, centered on Veeva Systems (VEEV) and Doximity (DOCS). Veeva Systems is demonstrating significant operational momentum, trading near its 52-week high on the back of approximately 15% LTM revenue growth and strong Q1 FY26 results. This performance is underpinned by substantial client acquisitions, including Merck adopting its Vault platform, making it the sixth top 20 pharmaceutical firm to do so. Further validation comes from new collaborations with Astellas, Boehringer Ingelheim, and the Sarah Cannon Research Institute, prompting bullish price targets of $295 from Mizuho and $310 from Raymond James. In contrast, Doximity presents a more complex picture. While Wells Fargo raised its price target to $62.00, it maintained an 'Equal Weight' rating, signaling caution. This reflects a 'Growth Debate' surrounding the company, which has seen annual growth fluctuate from 22.0% in FY23 to a guided range of 9%-11% for FY26. Wells Fargo's increased confidence, driving its forecast to the top end of guidance, is based on prospective catalysts including a strong drug pipeline and the rollout of its AI Scribe product, rather than on currently realized performance on par with Veeva.

Key Decisions for Investors

• Given Veeva's demonstrated market leadership, consistent execution with major client wins like Merck, and strong analyst support, investors may view it as a core holding, though its valuation near a 52-week high warrants consideration.
• For Doximity, investors should closely monitor the adoption and revenue impact of its AI Scribe product and pipeline developments as key catalysts that could justify Wells Fargo's optimism and counter the trend of decelerating growth.
• A potential strategy could involve favoring Veeva for its proven execution and market penetration, while treating Doximity as a higher-risk, catalyst-driven investment contingent on its ability to re-accelerate growth.