DocGo’s Growth Potential and Resilience: A Buy Rating Amidst Revenue Misses and Promising Sector Expansion

In a report released today, David Larsen from BTIG reiterated a Buy rating on DocGo (DCGO – Research Report), with a price target of $8.00.

David Larsen has given his Buy rating due to a combination of factors that highlight the potential growth and resilience of DocGo’s core business. Despite recent revenue and EBITDA misses, the company’s core payer and care gap closure business is performing well, supported by significant investments in Artificial Intelligence and automation. The Transport business is also showing promising growth, and there is an expectation for expansion in the Primary Care and Mobile Health sectors.
While there are some concerns regarding potential delays in municipal projects due to federal and city government pressures, as well as the impact of tariffs, the company still anticipates significant revenue from migrant-related work. The care gap closure business is expanding rapidly, and the use of technology like AI for automated direct messaging is expected to enhance operational efficiency. Additionally, the valuation of DocGo remains attractive, trading at a reasonable multiple of its projected 2026 EBITDA, supporting the positive outlook.

In another report released on April 8, Needham also maintained a Buy rating on the stock with a $4.00 price target.