DocGo (DCGO) Stock Forecast & Price Target

DocGo Inc. is projected to achieve approximately 25% growth in its hospital segment, anticipated to increase from around $200 million in 2024 to $250 million in 2025, primarily driven by medical transport services. The company has demonstrated a strong ability to renew and expand its customer base, driven by a robust logistics platform, while actively exploring new market opportunities, including a recent entry into Dallas with Methodist Hospital. Furthermore, management maintains confidence in achieving payor targets despite migration revenue uncertainties, suggesting a potential upside in overall financial performance through effective resource allocation and long-term growth strategies in value-based care arrangements.

DocGo Inc.'s financial outlook remains negative primarily due to a significant decrease in adjusted EBITDA margins, which are now projected at approximately 5%, down from the previous range of 8% to 10%. The company's mobile health services segment has faced challenges, with revenues of $71.8 million falling 9.9% short of expectations and declining 52.3% year-over-year. Additionally, adjusted EBITDA significantly underperformed, reported at $1.1 million compared to an estimate of $13.4 million, reflecting persistently high operational expenses amidst the transition away from migrant-related revenue.