Doximity rises after Morgan Stanley upgrades to 'overweight'

Shares of telehealth company Doximity DOCS.N up 3.5% at $45.37

Morgan Stanley upgrades to "overweight" from "equal-weight" rating; raises PT to $65 from $62

Brokerage says stricter constraints on direct-to-consumer drug advertising could drive pharma companies to spend more on platforms for healthcare professionals like Doximity, representing potential upside to its estimates

Sees an expanding market for healthcare professionals, helped by AI-enabled workflow tools and believes concerns over competitive risks from OpenEvidence are overdone

Also adds DOCS has consistently expanded a suite of tools, deepening its integration into clinicians’ daily workflows, resulting in increased engagement and higher monetization

13 of 22 brokerages rate the stock "buy" or higher, 7 "hold", 2 "sell"; their median PT is $65 — data compiled by LSEG

As of last close, stock down ~18% YTD