Bank of America Securities analyst Allen Lutz reiterated a Hold rating on Teladoc (TDOC – Research Report) today and set a price target of $8.00.
Allen Lutz has given his Hold rating due to a combination of factors surrounding Teladoc’s current strategic position and financial outlook. The company has recently made acquisitions, such as Catapult and UpLift, which clarify its strategic direction towards at-home diagnostics and virtual therapy. While these moves present potential for future growth, they also necessitate significant capital investment to engage new patients and optimize service delivery, which could pressure margins in the near term.
Despite Teladoc’s strong revenue base and broad scale, Lutz remains cautious about the company’s immediate trajectory. The declining enrollment in chronic care and weaker margins at BetterHelp add to this caution, as they may require further investment to drive engagement. Consequently, while recognizing Teladoc’s potential as a differentiated asset in digital health, Lutz maintains a Neutral rating, reflecting the anticipated downward pressure on margins as the company invests for future growth.
In another report released yesterday, Stephens also maintained a Hold rating on the stock with a $8.00 price target.