DocGo Inc is expected to extend its track record of beating consensus estimates when it reports its fourth-quarter earnings on March 13, according to Canaccord Genuity (TSX:CF, LSE:CF) analysts.
In a note to clients, the analysts forecast 2023 revenue for the provider of mobile medical services and transportation of $487.1 million, representing year-over-year growth of 12% and 34% when excluding COVID. The consensus projection is $493.2 million.
“The momentum that DocGo built during COVID has continued as it has been able to add new business to replace testing-related revenue as contracts have wound down,” they wrote.
They highlighted that the company has announced several pilots that are intriguing and could offer meaningful future growth opportunities.
“These include a pilot with Dollar General to bring medical services to rural populations and WEST PACE for remote monitoring services,” they wrote.
“We are keen for updates on both Dollar General and PACE expansion, but recognize that they are likely longer-term rather than near-term drivers.
“We will focus on any commentary regarding new contract wins, opportunities with new offerings such as remote patient monitoring (RPM), and the timing of expected launches.”
The analysts maintained their ‘Buy’ rating and price target of US$13. DocGo is currently trading at US$9.
“DocGo's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth profile and positive free cash flow make it an attractive investment,” they wrote.
“The upcoming year will show some moderation in growth as COVID is lapped; however, a strengthening pipeline, new service offerings, and expanded customer channels could portend sustainable 20% plus growth for several years to come.”
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