Teladoc’s Mixed User Growth and Cautious Outlook Lead to Hold Rating

Analyst Allen Lutz of Bank of America Securities reiterated a Hold rating on Teladoc, reducing the price target to $8.00.

Allen Lutz has given his Hold rating due to a combination of factors impacting Teladoc’s performance. One of the primary reasons is the mixed results in user growth metrics. While BetterHelp’s monthly active users (MAUs) showed some sequential improvement, there was still a year-over-year decline, particularly in international markets. This suggests potential challenges in sustaining user engagement and growth in the near term, especially given the macroeconomic uncertainties and weaker consumer sentiment.
Additionally, despite the positive growth in Livongo’s MAUs, which reached their highest levels since early 2024, the figures remain below 2022 levels. This indicates that while there is some recovery, it may not be sufficient to drive significant revenue acceleration in the short term. Consequently, Lutz has adjusted the price objective downward, reflecting a cautious outlook on Teladoc’s ability to achieve meaningful growth catalysts soon.

In another report released on November 18, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.50 price target.