DocGo price target lowered to $7 from $10 at Needham

Needham analyst Ryan MacDonald lowered the firm’s price target on DocGo to $7 from $10 and keeps a Buy rating on the shares. The analyst cites the company having materially lowered guidance for FY24 after an April announcement that they will provide accelerated transition assistance to a new provider of services for sites in NYC concurrent with the expiration of the original terms of its HPD contract in May. The $110M guide down was certainly disappointing, but it was somewhat expected by investors, and DocGo used the quarter as an opportunity to clear the deck, giving investors a fresh look at the fundamental profile of the core business, the firm added.