Allen Lutz, an analyst from Bank of America Securities, reiterated the Hold rating on Teladoc. The associated price target remains the same with $9.00.
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Allen Lutz has given his Hold rating due to a combination of factors influencing Teladoc’s current and future performance. The company’s recent acquisitions, Uplift and Catapult, are starting to show potential, particularly with the insurance rollout for virtual therapy, which is expected to contribute significantly to revenue in 2025. However, while these strategic moves are promising, there is caution regarding the near-term trajectory of the business, especially as Teladoc invests heavily in future growth initiatives, which could exert pressure on margins.
Despite the positive developments, such as the potential for Catapult Health to boost visit growth and consumer awareness, Teladoc faces stiff competition from other digital health companies aggressively pursuing similar opportunities. This competitive landscape may limit the duration of Teladoc’s growth potential. Consequently, while Teladoc is seen as a differentiated asset in digital health with a broad scale and revenue base, the cautious outlook on its immediate future justifies the Hold rating, with a price objective set at $9.00.