William Blair analyst Ryan Daniels has maintained their neutral stance on TDOC stock, giving a Hold rating yesterday.
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Ryan Daniels has given his Hold rating due to a combination of factors related to Teladoc’s recent performance and strategic direction. The company’s second-quarter results slightly exceeded expectations, but the BetterHelp segment, which focuses on direct-to-consumer behavioral healthcare, continues to struggle. Although integrated care sales showed some growth, BetterHelp’s sales and adjusted EBITDA experienced significant declines, highlighting ongoing challenges in this area.
Moreover, the guidance for adjusted EBITDA was modestly lowered, reflecting lower growth and margin expectations for BetterHelp. This suggests that while Teladoc is making efforts to transition BetterHelp to more in-network coverage, the process is still underway and presents uncertainties. Overall, Teladoc is in a transitional phase, with a focus on enhancing profitability and capital allocation. The company’s future success may depend on strategic actions, such as expanding into international markets and refining its BetterHelp strategy, which could stabilize the stock and potentially unlock value.
Daniels covers the Healthcare sector, focusing on stocks such as Addus Homecare, Evolent Health, and TransMedics Group. According to TipRanks, Daniels has an average return of 5.3% and a 42.54% success rate on recommended stocks.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $9.50 price target.