DocGo garners new ‘buy’ rating and $15 price target from BTIG

Research firm BTIG initiated coverage on mobile health and medical transportation services company DocGo Inc (NASDAQ:) with a “buy” rating and a price target of $15. Analysts like the company’s business model and expect profitably to will continue to rise.

DocGo’s transportation services include emergency response services and non-emergency transport services like ambulance and wheelchair transportation. It also offers mobile health services. Its customers include hospitals and health systems, health plans, and governments and municipalities.

“We like DCGO’s competitive standing in the industry for both its mobile health and transportation solutions. DCGO’s range of mobile health solutions is highlighted by the company’s ability to accommodate a range of needs for a wide client base,” wrote BTIG analysts.

The analysts added, “There is a growing shift away from fee-for-service pricing and care models and towards value-based ones that DCGO is built to support. Mobile health and medical transportation fit into the [value-based care] puzzle, and DCGO has positioned itself as a leader to capture opportunities in the growing spaces.”

BTIG thinks the total addressable market for mobile health is around $265 billion, and TAM is $7B to $13B for transportation services.

“We like the low market penetration rate for both of DCGO’s services, and we also like DCGO’s ~53% y/y revenue growth in its core business, steady margins, and strong pipeline of partnerships and backlog growth,” wrote the analysts.

BTIG isn’t the only firm on Wall Street that is positive on DocGo. At least six analysts cover the stock and they all have a buy or buy-equivalent ratings.

BTIG’s price target on DocGo implies upside of 60%.