TD Cowen analyst Charles Rhyee maintained a Buy rating on Talkspace today and set a price target of $6.00.
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Charles Rhyee has given his Buy rating due to a combination of factors that highlight Talkspace’s promising growth trajectory. The company is expected to achieve significant payor revenue growth, particularly with a 35% year-over-year increase, as it expands its Medicare and TRICARE contributions through 2025. Management has indicated that TRICARE is performing better than anticipated, benefiting from efficient marketing strategies and lower competition, which supports a positive outlook.
Furthermore, Talkspace’s strategic focus on enhancing utilization in the Payor segment is anticipated to yield returns on marketing investments in the latter half of 2025. The company has reaffirmed its revenue and adjusted EBITDA guidance, with expectations of a stronger performance in the fourth quarter. This strategic positioning, along with the potential for revenue reacceleration, underpins Rhyee’s confidence in Talkspace’s future prospects, justifying the Buy rating.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TALK in relation to earlier this year.