In a report released yesterday, David Larsen from BTIG maintained a Buy rating on DocGo (DCGO – Research Report), with a price target of $8.00.
David Larsen’s rating is based on several factors that highlight the potential for growth in DocGo’s core business despite recent challenges. Although the company experienced a decline in migrant-related revenue, which impacted their quarterly performance, the reaffirmation of the 2025 revenue guidance suggests confidence in achieving the projected figures. The company is actively transitioning its business model to focus on other payers, municipalities, and health systems, which is expected to drive future growth.
Furthermore, DocGo is investing in its technology infrastructure and expanding its client base, with significant deals in the pipeline, including engagements with the Veterans Administration and various municipalities and hospitals. The company’s efforts to enhance digital communication capabilities and maintain high client satisfaction scores are promising indicators of its long-term potential. Despite the short-term setbacks, the strategic initiatives and expected improvements in cash flow contribute to the Buy rating, reflecting optimism about the company’s ability to capitalize on new opportunities and expand its core business.
DCGO’s price has also changed slightly for the past six months – from $3.670 to $3.920, which is a 6.81% increase.