Analyst Allen Lutz from Bank of America Securities reiterated a Hold rating on Teladoc and decreased the price target to $8.50 from $8.75.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Allen Lutz has given his Hold rating due to a combination of factors influencing Teladoc’s current and future performance. Despite Teladoc exceeding expectations in revenue and EBITDA for the quarter, the company’s strategic shift is still in progress. The recent acquisitions and product launches provide some clarity, yet there is more work needed to accelerate growth. The potential for a model shift exists as Teladoc ventures into at-home diagnostics and virtual therapy, but the growth in Integrated Care remains flat without mergers and acquisitions.
Additionally, while Teladoc’s broad scale and recent acquisitions position it as a unique player in digital health, there are concerns about the near-term trajectory. The company is expected to face margin pressures as it invests in future growth, and aggressive competition from digital health peers could limit its growth opportunities. Consequently, the price objective has been slightly lowered, reflecting reduced EBITDA estimates for the coming years. These factors contribute to the cautious outlook and the reiteration of a Neutral rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $8.00 price target.