Cautious Hold on Teladoc Amidst Declining User Growth and Uncertain Initiatives

In a report released today, Allen Lutz from Bank of America Securities reiterated a Hold rating on Teladoc (TDOC – Research Report), with a price target of $9.50.

Allen Lutz has given his Hold rating due to a combination of factors impacting Teladoc’s performance. One significant concern is the weaker-than-expected growth in BetterHelp’s monthly active users (MAUs), particularly in the international markets, where growth decelerated sharply compared to previous months. This slowdown raises doubts about the company’s ability to meet its first-quarter revenue growth guidance, especially if the trend continues.
Additionally, Livongo’s MAUs have been declining consistently, which could further pressure Teladoc’s Integrated Care growth in the coming years. While Teladoc is pursuing several growth initiatives, such as acquisitions and partnerships, these efforts are still in early stages, and their impact remains uncertain. Consequently, Lutz maintains a cautious stance, reiterating a Hold rating and adjusting the price objective to $9.50 due to peer multiple contraction.