Needham analyst Ryan MacDonald has reiterated their neutral stance on TDOC stock, giving a Hold rating today.
Ryan MacDonald has given his Hold rating due to a combination of factors including Teladoc Health’s recent financial performance and strategic decisions. The company’s first-quarter results surpassed expectations, but the forecast for profitability in fiscal year 2025 has been adjusted downward due to the acquisition of UpLift, a mental health provider. This acquisition is seen as a strategic move to enhance insurance coverage and reimbursement, which is crucial for Teladoc’s growth strategy.
Despite the potential benefits of acquiring UpLift, there are still uncertainties surrounding the success of the BetterHelp segment’s turnaround. The segment experienced a decline in user numbers in the first quarter, and the challenging purchasing environment adds to the uncertainty. Additionally, there are concerns in the Integrated Care segment, such as a decline in customer enrollment, which contribute to the decision to maintain a Hold rating on the stock.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $8.00 price target.