Shares of Doximity (DOCS) are on the rise on Wednesday after the company reported better than expected earnings per share and revenue in its first report since the company's market debut back in June. Saying that he is "very encouraged" by the financial results, Canaccord analyst Richard Close raised his price target on the stock to $70 and kept a Buy rating on the name.

RESULTS: Doximity reported first-quarter earnings per share of 11c, which was better than the expected 7c. The company also reported revenue of $72.7M versus $36.4M, an increase of 100% year-over-year. Consensus estimates were at $63.6M, according to Bloomberg. Doximity, which provides professional networking and telehealth tools for medical professionals, said it expects sales for the full fiscal year to be between $296.5M-$299.5M, with consensus at $277.7M. For the second quarter, the company expects revenue between $73M-$74M.

Additionally, Doximity noted that up to 3.9 million shares could be sold on August 13 to 17, 2021 by eligible employees pursuant to the lockup agreements signed in connection with the IPO.

"VERY ENCOURAGED" BY RESULTS: Following the company's quarterly report, Canaccord analyst Richard Close raised the firm's price target on Doximity to $70 from $64 and kept a Buy rating on the shares. The analyst said he is "very encouraged" by the financial results and believes the company is very well-positioned for continued growth as health systems and drug companies increasingly shift brand awareness efforts to digital channels that deliver high return on investment, or ROI.

Also commenting on the earnings release, Piper Sandler analyst Sean Wieland highlighted that the company reported 100% year-over-year topline growth, driving revenue and adjusted EBITDA beats relative to consensus estimates. Growth was entirely organic, with 80% of revenue coming from existing clients, and 24 new and existing clients graduated into the $100K revenue bucket, he added. Wieland remains a buyer of "this high growth story." He reiterated an Overweight rating on the stock and maintained a $68 price target on the shares.

Calling it an "outstanding" first quarter, William Blair analyst Ryan Daniels noted that Doximity's results "easily exceeded" expectations across all key financial and operating metrics. Moreover, the first quarter results point to continued momentum for the Doximity platform, as the company benefits from strong demand due to a secular shift in pharma marketing spend toward digital solutions, the analyst contended. Daniels has an Outperform rating on the shares.

PRICE ACTION: In Wednesday morning trading, shares of Doximity have gained almost 18% to $62.47.