Teladoc (TDOC) has received a new Hold rating, initiated by Mizuho Securities analyst, Steven Valiquette.
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Steven Valiquette has given his Hold rating due to a combination of factors affecting Teladoc’s current market position. While the company shows promising growth in its Integrated Care segment, particularly through its core virtual health services and chronic care management, there are concerns about the attrition rate in its BetterHelp segment. The recent acquisition of UpLift is expected to stabilize Teladoc’s virtual behavioral health offerings in the long term, but the near-term challenges remain significant.
Valiquette notes that the BetterHelp segment faces high customer acquisition costs and declining consumer sentiment, which impact its profitability. Despite management’s efforts to manage marketing ROI more effectively, the EBITDA margin for BetterHelp has been compressing. This, combined with the potential for continued attrition, suggests that Teladoc may trade at a valuation below the industry average until there are signs of improvement in the BetterHelp segment. Consequently, the Hold rating reflects a cautious stance amid these mixed signals.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.00 price target.