Bank of America Securities analyst Allen Lutz has maintained their neutral stance on TDOC stock, giving a Hold rating on August 19.
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Allen Lutz has given his Hold rating due to a combination of factors impacting Teladoc’s performance. The BetterHelp platform showed a modest improvement in monthly active users (MAUs) compared to the previous quarter, although it still experienced a year-over-year decline. This cautious outlook is compounded by increased customer acquisition costs, which could affect short-term growth. Additionally, while Teladoc is making strides in integrating insurance capabilities and expanding its offerings, these initiatives are still in early stages and require further progress.
On the other hand, Livongo’s MAUs have shown a positive trend, reversing previous declines and aligning with management’s expectations for growth in chronic care programs. Despite this improvement, the overall MAU growth for Teladoc has moderated from its peak, and recent acquisitions, such as Telecare, are not expected to significantly impact financial results in the near term. Consequently, Allen Lutz maintains a Neutral rating, reflecting a balance between current execution and future growth investments.
According to TipRanks, Lutz is a 4-star analyst with an average return of 7.0% and a 61.19% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Teladoc, GoodRx Holdings, and Doximity.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.