Allen Lutz, an analyst from Bank of America Securities, maintained the Hold rating on Teladoc. The associated price target remains the same with $8.75.
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Allen Lutz has given his Hold rating due to a combination of factors influencing Teladoc’s current market position. One of the primary concerns is the significant decline in BetterHelp’s monthly active users (MAUs), which fell by 27% year-over-year in June, with a more pronounced drop in the U.S. market. This downturn is attributed to a cautious consumer spending environment, higher customer acquisition costs, and increased competition from in-network alternatives. Consequently, there is uncertainty regarding BetterHelp’s revenue performance in the second quarter, potentially aligning with the lower end of Teladoc’s segment guidance.
On a more positive note, Livongo’s MAUs showed signs of recovery, with a notable improvement in June compared to previous months, possibly due to a new weight management contract. Additionally, Teladoc’s overall MAUs reached an all-time high in June, driven by increased engagement in certain health programs. Despite these positive developments, the mixed performance across different segments and ongoing challenges in the core Teladoc network contribute to the Hold rating, as the company navigates through these uncertainties.
According to TipRanks, Lutz is a 4-star analyst with an average return of 6.1% and a 59.33% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, DENTSPLY SIRONA, and Teladoc.
In another report released on July 16, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $8.00 price target.