Doximity Cut to Sell on Rising OpenEvidence Competition; Price Target Maintained at $20, Signaling Downside Risk

In a report released yesterday, Allen Lutz from Bank of America Securities maintained a Sell rating on Doximity, with a price target of $20.00.

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Allen Lutz has given his Sell rating due to a combination of factors tied to competitive pressures and execution risks around Doximity’s AI strategy. He highlights that OpenEvidence has rapidly scaled its annualized revenue to about $300 million, roughly doubling in just seven months, and is capturing a significant share of growth in the roughly $3 billion pharma advertising market.

This fast trajectory suggests that OpenEvidence may be diverting ad dollars and enterprise contracts that Doximity could otherwise win, potentially limiting Doximity’s near‑term revenue expansion or forcing higher investment to defend market share, which could pressure margins. While recent studies show Doximity’s clinical AI performing strongly and survey data indicate it is still gaining some share, Lutz maintains a cautious stance and keeps the price target unchanged at $20, implying downside from the current trading level.

DOCS’s price has also changed dramatically for the past six months – from $41.100 to $21.730, which is a -47.13% drop .