Analyst Richard Close from Canaccord Genuity maintained a Buy rating on Teladoc (TDOC – Research Report) and decreased the price target to $12.00 from $14.00.
Richard Close has given his Buy rating due to a combination of factors that highlight Teladoc’s potential for growth and stabilization. The recent acquisition of UpLift, a virtual mental health provider, is a significant factor, as it enhances Teladoc’s BetterHelp segment by providing in-network coverage to over 100 million lives. This acquisition is expected to improve customer conversion and retention, despite initially lower gross margins, and is seen as a step towards stabilizing the BetterHelp business.
Additionally, Teladoc’s consolidated revenue and adjusted EBITDA have surpassed both internal and consensus estimates, indicating strong performance, particularly in the Integrated Care segment. Although there are concerns, such as a decrease in Chronic Care program enrollment and potential tariff impacts, the company’s extensive membership base and new offerings, like next-generation cardiometabolic solutions, provide a competitive advantage. The favorable risk/reward profile at a valuation of sub 6x 2026E adj-EBITDA supports the Buy rating, with a revised price target of $12.
TDOC’s price has also changed moderately for the past six months – from $8.860 to $7.190, which is a -18.85% drop .