DocGo (DCGO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Richard Close from Canaccord Genuity maintained a Buy rating on the stock and has a $5.00 price target.
Richard Close has given his Buy rating due to a combination of factors that reflect both challenges and opportunities for DocGo. Despite a recent quarter where revenue and adjusted EBITDA fell short of expectations, Close sees potential in the company’s strategic shift towards more sustainable revenue streams. The transition away from short-term projects, such as those related to COVID and migrant services, is viewed as a positive move towards long-term growth.
Close acknowledges the robust pipeline of new business opportunities across multiple channels, including payers, health systems, and municipal contracts. This pipeline, along with management’s confidence in achieving the 2025 revenue guidance, underpins the Buy rating. However, Close also notes that while the company’s ability to secure new contracts is strong, the timing and execution of these contracts will be crucial in meeting future financial targets. Overall, the Buy rating reflects a belief in DocGo’s strategic direction and potential for growth, despite current financial challenges.
Close covers the Healthcare sector, focusing on stocks such as Evolent Health, Teladoc, and Phreesia. According to TipRanks, Close has an average return of 12.8% and a 53.21% success rate on recommended stocks.
In another report released today, Needham also reiterated a Buy rating on the stock with a $4.00 price target.