DocGo contract transition could remove overhang, says Canaccord

Canaccord analyst Richard Close noted Politico published an article stating that NYC will be declining to renew the DocGo migrant services contract that is coming to the end of the 1-year term in early May. The company will continue providing services for roughly1,800 migrants in upstate New York, noting the Mayor’s office is working with the comptroller’s office on a temporary extension for that part of the contract. Canaccord said they would not view this contract being awarded away from DocGo to necessarily be a bad outcome given all the negative headlines investors have endured over the last nearly 10 months. They believe it could be viewed as a long-term positive, assuming the pipeline of new mobile health business opportunities outside of NYC migrant work is as robust as communicated. Canaccord maintains its Buy rating and $10 price target on DocGo shares.