Stifel lowered the firm’s price target on DocGo to $6.50 from $8 and keeps a Buy rating on the shares. DocGo’s asylee support contract with New York’s Housing Preservation & Development was not renewed and asylee services provided to other agencies remain in question as these contracts have become “highly politicized/controversial,” says the firm, which has little visibility into how these relationships/contracts may wind down. Given the risks and overhang, the firm has revised its estimates to assume these contracts wind down in the second half of 2024 and cease contributing to revenue in 2025.
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