Doximity's (DOCS) recent stock correction provides an attractive entry point amid higher engagement and monetization of its platform tools, Morgan Stanley said in a Monday report.

"Underperformance in DOCS is at odds with our checks on the business and strengthening platform engagement," it said.

The report said a 30% correction since its earnings early November is making the stock attractive at more than a 25% discount to its median EV/EBITDA multiple post COVID.

Doximity has expanded a suite of tools, deepening its integration into clinicians' daily workflows, resulting in higher engagement and higher monetization, the note added.

"We see an expanding market for HCP-targeted marketing led by AIenabled workflow tools and view concerns over competitive risks from OpenEvidence as overdone," the note said. HCP refers to healthcare professionals.

Morgan Stanley also raised its revenue growth guidance for fiscal 2026, 2027, and 2028 to 14%, 12%, and 12%, respectively, from 13%, 10%, and 9% earlier.

Morgan Stanley upgraded the stock to overweight from equalweight and raised its price target to $65 from $62.

Price: 45.34, Change: +1.49, Percent Change: +3.40