Morgan Stanley Sees DOCS Underperformance as Strategic Buying Opportunity Despite Market Slump

Morgan Stanley has upgraded Doximity (DOCS) to an 'Attractive Entry Point' following a recent stock dip, citing sustained user engagement and strong platform fundamentals. The firm highlights consistent growth in physician adoption and data utilization as key drivers.

Morgan Stanley has reevaluated Doximity’s (DOCS) recent market performance, identifying the stock’s underperformance as a compelling entry opportunity. Despite a 12% decline in share price over the past three months, the bank emphasizes that core business metrics remain robust, particularly among its core physician user base. The firm points to Doximity’s active physician network, which now exceeds 1.3 million users, representing a 14% year-over-year increase. Engagement indicators show that physicians spend an average of 38 minutes per session on the platform, up from 32 minutes in early 2024, underscoring sustained platform stickiness. Additionally, the company’s physician-to-patient matching services saw a 22% rise in transaction volume during Q4 2025. These metrics suggest underlying strength in Doximity’s digital health ecosystem, even amid broader tech sector volatility. Morgan Stanley notes that DOCS’s current valuation, trading at 16.3x forward earnings, is below its three-year average of 21.7x, reinforcing the argument for a contrarian position. The recommendation is likely to influence institutional and retail investors with exposure to healthcare technology. Given DOCS’s position in the digital health infrastructure space, the sentiment shift could impact trading volumes and limit downside risk in a sector increasingly focused on physician-centric solutions.