BTIG analyst David Larsen has maintained their neutral stance on DCGO stock, giving a Hold rating on August 9.
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David Larsen has given his Hold rating due to a combination of factors impacting DocGo’s current financial performance and future prospects. While the company has shown some positive developments, such as exceeding revenue expectations and gaining momentum in its payer business, there are significant challenges that need to be addressed. The exit from the Colorado market and the decline in migrant-related revenue have put pressure on overall revenue, and it will take time for new services to scale profitably.
Additionally, the path to achieving positive EBITDA remains uncertain, with recent declines in adjusted EBITDA and the need for substantial revenue growth to reach break-even levels. Although management is making efforts to improve cost structures and expand business lines, the inconsistency in results and the time required to offset revenue declines contribute to a cautious outlook. Given these factors, Larsen maintains a Neutral stance, acknowledging the potential for growth but also recognizing the hurdles that DocGo must overcome to achieve consistent profitability.
In another report released on August 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.50 price target.