Cautious Hold on DocGo: Awaiting Successful Integration and Execution of SteadyMD Acquisition

Richard Close, an analyst from Canaccord Genuity, maintained the Hold rating on DocGo. The associated price target remains the same with $1.60.

Richard Close has given his Hold rating due to a combination of factors surrounding DocGo’s recent acquisition of SteadyMD. While the acquisition is seen as a strategic move to enhance DocGo’s virtual care capabilities and expand its clinician network, there is still a significant amount of work required to integrate the new platform effectively. The management’s plan to leverage SteadyMD’s technology to improve efficiency and increase gross margins in DocGo’s mobile health segment is promising, but execution remains key.
Furthermore, although the acquisition has the potential to boost DocGo’s presence in new geographies and capitalize on opportunities in the payer business, the company must still address challenges in driving revenue growth and optimizing its cost structure. The valuation of the acquisition appears reasonable, but the anticipated benefits are contingent on successful integration and execution. As a result, Richard Close maintains a cautious stance, awaiting further updates on DocGo’s progress in achieving its financial targets and realizing the full potential of the acquisition.