Balancing Emerging Strengths and Persistent Headwinds: Maintaining a Hold on Teladoc Amid Mixed Growth Signals and Limited Near-Term Upside

Analyst Allen Lutz of Bank of America Securities maintained a Hold rating on Teladoc, retaining the price target of $8.00.

Allen Lutz has given his Hold rating due to a combination of factors tied to Teladoc’s mixed operating trends and valuation. BetterHelp’s monthly active users are running slightly ahead of the prior quarter on a sequential basis, but year-over-year declines remain steep and competitive pressures—particularly from providers that accept insurance—limit visibility into a sustained rebound. At the same time, management has signaled slower advertising spend in the fourth quarter, making it harder to rely on recent usage strength, especially given the volatility of third‑party app-tracking data. These dynamics support a cautious stance on the direct‑to‑consumer mental health business despite some near‑term improvement.

Livongo’s chronic care platform and Teladoc’s core network show healthier momentum, with monthly active users trending up sequentially and year‑over‑year growth turning positive after a prolonged decline, helped by the onboarding of a large new customer. Even so, Sensor Tower data point to total fourth‑quarter revenue tracking slightly below consensus expectations and toward the low end of company guidance, suggesting limited near‑term upside. Lutz therefore sees fundamental value in Teladoc’s integrated care offering but not enough evidence of a decisive turnaround in growth or profitability to justify a more aggressive rating. This balance of emerging positives against ongoing headwinds underpins his decision to maintain a Neutral (Hold) recommendation and a modest upside to his price objective relative to the current share price.

According to TipRanks, Lutz is a 5-star analyst with an average return of 12.2% and a 67.34% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Teladoc, and Doximity.

In another report released on December 8, Barclays also initiated coverage with a Hold rating on the stock with a $8.50 price target.