Teladoc’s Transitional Phase: Hold Rating Amid Uncertain Long-Term Prospects

Analyst Michael Cherny of Leerink Partners reiterated a Hold rating on Teladoc (TDOC – Research Report), reducing the price target to $7.50.

Michael Cherny has given his Hold rating due to a combination of factors influencing Teladoc’s current and future prospects. While the company’s recent quarterly results were satisfactory, with revenue and adjusted EBITDA surpassing expectations, the long-term outlook remains uncertain. The focus on enhancing revenue per member in Integrated Care and aligning BetterHelp with payors is promising, but these initiatives will require time to materialize.
Despite the positive aspects, such as the growth in Integrated Care membership and strategic moves like the UpLift acquisition, Teladoc is still in a transitional phase. The company faces challenges in stabilizing its business and realizing the potential of its strategic initiatives. As a result, the near-term upside catalysts appear limited, prompting the decision to maintain a Hold rating and adjust the 12-month price target downward.

In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $8.00 price target.