DocGo stock rating reiterated by Cantor Fitzgerald on growth potential

Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $3.00 price target on DocGo (NASDAQ:DCGO), citing the company’s conservative guidance strategy and expansion potential. This target represents a 170% upside from the current price of $1.11, with DocGo shares showing recent positive momentum with an 8.82% gain over the past week despite falling 73.8% year-to-date.

The research firm commended DocGo’s approach of basing guidance on existing contracts while allowing for potential increases if new contracts are secured, noting this represents a shift from previous guidance strategies. This cautious approach comes as the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 2.59.

DocGo is currently negotiating to expand contract scope with two national payors and is in discussions with two additional national payors as part of its "land and expand" strategy across geographies and products.

Cantor Fitzgerald identified upsell potential in DocGo’s remote patient monitoring segment, which currently generates $15 million in revenue with a 10% adjusted EBITDA margin contribution, noting any expansion would exceed current guidance.

The total payor/provider segment, including remote patient monitoring, is generating $50 million in revenue in 2025, with $5 million from the October SteadyMD acquisition, while guidance for 2026 projects $85 million including $25 million total from SteadyMD and $10 million in organic growth.InvestingPro analysis suggests DocGo is currently undervalued, trading at a low revenue multiple despite its growth potential. The broader analyst community maintains a Buy consensus with targets ranging from $1.60 to $4.00. For deeper insights, including 11 additional ProTips and a comprehensive Pro Research Report on DocGo, visit InvestingPro.

In other recent news, DocGo Inc. reported its Q3 2025 earnings, revealing a notable decline in both earnings per share (EPS) and revenue compared to the previous year. The company posted an EPS of -$0.28, significantly missing the forecasted -$0.12, resulting in a negative surprise of 133.33%. Revenue for the quarter was $70.8 million, a substantial decrease from the $138.7 million reported in Q3 2024. These results highlight a challenging period for DocGo, with both earnings and revenue falling short of expectations. Despite the disappointing financial results, DocGo’s stock experienced minimal movement in aftermarket trading. Investors may find these developments concerning as the company navigates through a period of decreased financial performance. The recent earnings report is a critical piece of information for stakeholders assessing the company’s current situation.

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