Doximity's (DOCS) weak fiscal Q4 guidance "will further fuel the bear-case concerns" that the company is losing market share, Morgan Stanley said Friday in a report.

"Combined with a messy guide accompanied by the CFO's medical leave of absence, the stock is likely to overreact," Morgan Stanley said.

Still, an "overreaction provides an opportunity," the report said.

Management said January showed the strongest pharma bookings growth ever, and Doximity is planning to roll out a commercial AI product in 2026, Morgan Stanley said.

Investors received better disclosure on DoxGPT, and the monetization prospects are an "upside driver," and "meaningful pullback" on the shares represent a buying opportunity, the report said.

Doximity shares slumped 23% in Friday trading.

Morgan Stanley cut its price target on Doximity stock to $49 from $65 and maintained its overweight rating.

Price: 25.75, Change: -7.57, Percent Change: -22.72