Doximity slides after Wells Fargo turns bearish on growth concerns

Doximity

18/07/2024 12:03

** Shares of telehealth co Doximity  DOCS.N  slips 3.4% to
$28 premarket
    ** Wells Fargo downgrades co to "underweight" from
"equal-weight"; trims PT to $19 from $27
    ** Brokerage's biopharma survey points to slowing growth,
expected to drive a downward rerating in stock
    ** Says survey shows less client desire to rely on co to
advertise mature brands, suggesting declining ad spend over
time; client wallet share approaching plateau
    ** Brokerage also flags clients pulling back on platform
spending, competitors capturing market share; co may need to
accelerate revenue growth to justify current premium to peers 
    ** 5 brokerages rate co "buy" or higher, 13 rate it "hold"
and one rates it "sell"; median PT at $30 - LSEG data 
    ** Stock up 3.4% YTD, till last close

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com;))