Canaccord Genuity raises DocGo stock price target to $1.60 on improved cash position

Published 21/08/2025, 12:10
Canaccord Genuity raises DocGo stock price target to $1.60 on improved cash position

Investing.com - Canaccord Genuity raised its price target on DocGo (NASDAQ:DCGO) to $1.60 from $1.45 on Thursday, while maintaining a Hold rating on the mobile health services provider. The stock currently trades at $1.61, with analyst targets ranging from $1.45 to $4.00. According to InvestingPro analysis, DocGo appears undervalued based on its Fair Value assessment.

The research firm cited DocGo’s improved cash position following substantial collections of receivables related to its New York migrant contract. After the second quarter, the company paid off its credit facility and now expects to have over $110 million in cash and investments. InvestingPro data confirms the company’s strong liquidity, with a healthy current ratio of 2.36 and more cash than debt on its balance sheet.

This strengthened financial position provides DocGo with sufficient runway to reach its targeted adjusted-EBITDA profitability, which the company has projected for the second half of 2026. The improved cash position also enables DocGo to continue its share repurchase program, with $11 million remaining available.

Despite these positive developments, Canaccord Genuity maintained its cautious stance, noting that DocGo still faces "substantial work" to grow core revenue and optimize its cost structure before returning to profitability.

The firm acknowledged that the improved cash position likely drove DocGo’s stock higher following its earnings report, but Canaccord continues to maintain what it describes as a "believe it when I see it" stance toward the company’s turnaround efforts.

In other recent news, DocGo Inc. reported its Q2 2025 earnings, revealing a notable shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of -$0.11, which was below the anticipated -$0.03. Revenue also fell short, coming in at $80.4 million against the expected $99.08 million. These results highlight a significant decline in revenue for the quarter. Despite the earnings miss, DocGo’s stock showed a slight increase in premarket trading. These developments are part of the company’s recent financial disclosures. Investors will be closely monitoring any further updates from DocGo regarding its financial performance.

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