Citi analyst Daniel Grosslight maintained a Hold rating on Teladoc (TDOC – Research Report) yesterday and set a price target of $11.00.
Daniel Grosslight has given his Hold rating due to a combination of factors impacting Teladoc’s performance. The company’s fourth-quarter results showed mixed outcomes, with revenue slightly exceeding expectations, yet a notable decline in adjusted EBITDA due to high advertising expenses in the BetterHelp segment. Although there was a positive sign of increased paying members for BetterHelp, the segment remains volatile, and the guidance for 2025 suggests continued revenue declines and no margin improvement.
Additionally, Teladoc’s Integrated Care segment is experiencing a shift towards more visit-only pricing models, which could introduce more volatility and seasonality into its revenue stream. While international expansion for BetterHelp is progressing, challenges such as high customer acquisition costs and the need to stabilize revenue declines remain. These uncertainties and the lack of significant margin improvement contribute to the Hold rating, reflecting a cautious outlook on the company’s near-term prospects.
TDOC’s price has also changed dramatically for the past six months – from $7.310 to $10.990, which is a 50.34% increase.