Morgan Stanley Views Doximity (DOCS) Underperformance as Attractive Entry Point Amid Strong Engagement

Doximity Inc. (NYSE:DOCS) is one of the oversold stocks to buy now. On December 15, Morgan Stanley upgraded Doximity to Overweight from Equal Weight with a price target of $65, which was increased from $62. Morgan Stanley stated that Doximity’s recent stock underperformance is inconsistent with the company’s business checks and the platform’s growing user engagement. The firm suggested that both company guidance and Street estimates appear conservative, creating what they view as an attractive entry point for investors at current share prices.

On December 8, Barclays analyst Glen Santangelo initiated coverage of Doximity with an Overweight rating and a $63 price target. While Barclays maintains a generally Neutral stance on the broader US healthcare tech and distribution sector, the firm is notably bullish on drug distributors. In contrast, the firm holds a more cautious and mixed view regarding the dental and healthcare IT sub-sectors.

The company’s strategic focus on AI  has yielded significant user engagement, with AI Scribe users nearly tripling between FQ1 2026 and FQ2 2026. Doximity successfully integrated Pathway’s extensive medical data sets and AI models into its DoxGPT feature, granting physicians access to over 2,000 medical journals and integrated drug references. Total AI-related Quality Adjusted Users/QAUs rose 50% quarter-over-quarter, as doctors increasingly adopt these tools to streamline workflows and clinical tasks.

Doximity Inc. (NYSE:DOCS) operates as a digital platform for medical professionals in the US.

While we acknowledge the potential of DOCS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.