Wells Fargo analyst Stan Berenshteyn downgraded Doximity Inc (NYSE: DOCS) from Overweight to Equal Weight with a price target of $18.00 (from $32.00).

The analyst comments: “Our survey work and checks surfaced Doximity as a stable platform (MAU / budgets) despite also lagging as an AI reference tool. While we flagged idiosyncratic risks to the story and lowered our PT ahead of the earnings print, we remained at OW as our recent KOL calls suggested stable share of ad budgets and an improving macro backdrop that we expected act as a rising tide that lifts all boats.

Moving back to the sidelines. Doximity's engagement & new monetization increasingly depends on AI, where our 4Q survey work suggested it is already behind. In a winner takes-most market, Doximity's rising AI focus (and related compute costs) is pressuring margins before providing revenue upside. The AI search pivot is credible in concept, but execution risk is high, and we see greater odds Doximity cedes provider engagement share to competitive leaders in the space than reasserts leadership.”

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Shares of Doximity Inc closed at $23.39 yesterday.