Wells Fargo downgraded Doximity Inc. to Underweight from Equal Weight. The bank set a price target of $18.00 for the stock.
This rating change follows a 32% surge in the share price on Friday. Strong quarterly results and positive commentary on AI tool adoption drove that recent rally.
Analysts stated that Doximity’s valuation is now high compared to peers with faster growth. The company's underlying financial outlook remains largely unchanged.
Wells Fargo highlighted that future upside depends on an AI narrative that is difficult to quantify. This action introduces a cautious perspective following a period of significant positive momentum.