Canaccord has revised its outlook on DocGo (DCGO, Financial), downgrading the stock to Hold from Buy, with a new price target of $1.45, substantially reduced from the previous target of $5. This decision comes in response to a disappointing first-quarter performance and a significant reduction in projected guidance for 2025. The firm acknowledges the delay in updating its recommendation but believes the downgrade is necessary. The damage to the stock price appears significant, with expectations that shares will remain stable within a range until there is more business clarity and transparency. Canaccord indicates the necessity for further insights into the company's operations before predicting any potential movement in the share value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for DocGo Inc (DCGO, Financial) is $3.38 with a high estimate of $6.00 and a low estimate of $1.45. The average target implies an upside of 141.67% from the current price of $1.40. More detailed estimate data can be found on the DocGo Inc (DCGO) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, DocGo Inc's (DCGO, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DocGo Inc (DCGO, Financial) in one year is $4.92, suggesting a upside of 251.43% from the current price of $1.4. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DocGo Inc (DCGO) Summary page.
DCGO Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DocGo Inc (DCGO, Financial) is experiencing strong growth in its medical transportation business, with a projected 575,000 total transports by the end of 2025 and potential to reach 700,000 by 2026.
- The company has successfully integrated its technology platform with industry-leading EHRs, providing transparency and securing new contracts with health system partners.
- The payer and provider vertical has shown substantial growth, with assigned lives increasing from 700,000 to over 900,000 in a quarter.
- DocGo Inc (DCGO) has expanded its service offerings by acquiring PTI Health, a mobile lab collection and phlebotomy company, expected to complete over 125,000 blood draws in 2025.
- The company maintains a strong balance sheet, projecting positive cash flow from operations and expecting to end the year with over $110 million in cash, enabling it to be debt-free.
Negative Points
- DocGo Inc (DCGO) has removed its government population health vertical from 2025 guidance due to policy changes and budget cuts, leading to substantial uncertainty and delays in municipal project launches.
- The company revised its 2025 revenue guidance down from $410-$450 million to $300-$330 million, with an expected adjusted EBITDA loss of $20-$30 million.
- There is a significant decline in total revenue for Q1 2025, down to $96 million from $192.1 million in Q1 2024, primarily due to the wind down of migrant-related projects.
- The adjusted gross margin for the mobile health segment decreased from 35.5% in Q1 2024 to 30.8% in Q1 2025, impacted by the early-stage payer and provider business.
- SG&A expenses remain elevated as a percentage of total revenues, increasing from 26.8% in Q1 2024 to 46.7% in Q1 2025, despite efforts to reduce costs.
