DocGo (DCGO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ryan MacDonald from Needham reiterated a Buy rating on the stock and has a $4.00 price target.
Ryan MacDonald has given his Buy rating due to a combination of factors including DocGo’s strategic transition and future growth potential. Despite a recent mixed performance, primarily due to the accelerated conclusion of a significant contract, MacDonald sees promise in the company’s strategic shift towards its core payor vertical. This transition involves reallocating resources from migrant work, which has temporarily impacted margins, but is expected to stabilize as personnel are retrained.
MacDonald acknowledges investor concerns regarding the sustainability of migrant-related revenues in the first half of 2025. However, he points out that management has reaffirmed their targets for payor-related services, indicating that this sector could compensate for any shortfalls. This strategic focus on the payor business is anticipated to provide upside potential, justifying the Buy rating despite the current investment-heavy outlook.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $5.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DCGO in relation to earlier this year.