Teladoc upgraded to Buy at BofA on BetterHelp transition

BofA upgraded Teladoc (TDOC) to Buy from Neutral with an unchanged price target of $7, driven by greater confidence in the margin trajectory at BetterHelp as the unit transitions from direct-to-consumer to insurance coverage. Assuming BetterHelp can transition 50%-60% of its revenue to insurance coverage by 2028 would support an enterprise value of $1.2B, which it more than Teladoc’s entire valuation today before including Integrated Care and Livongo, the analyst tells investors.