Doximity (DOCS) will likely benefit from a shift in spend by pharmaceutical companies from direct-to-consumer, or DTC, advertising to the healthcare provider, or HTC, channel following US Food and Drug Administration reforms that added friction to the DTC channel, BofA said in a note Monday.

Doximity operates an online medical platform where major pharma companies place their ads, the note said.

The combination of recent decisions by companies like Alnylam Pharmaceuticals (ALNY) and the results of a BofA quarterly survey on pharma advertising spend indicate that Doximity's Q4 "budget flush will be significantly above Street expectations," BofA said.

Over 60% of respondents in the BofA survey said they expect the DTC advertising reforms to benefit HCP ad budgets, BofA said.

Meanwhile, Alnylam said recently it would pause its TV ads and other pharma companies may "be shifting spend as well," the note said.

BofA upgraded Doximity to buy from neutral and lifted the company's price target to $82 from $75.

Doximity shares were up over 6% in recent trading.

Price: 71.30, Change: +4.46, Percent Change: +6.67