Bank of America Securities analyst Allen Lutz maintained a Hold rating on Teladoc (TDOC – Research Report) yesterday and set a price target of $13.50.
Allen Lutz has given his Hold rating due to a combination of factors affecting Teladoc’s financial performance and future outlook. The company’s fourth-quarter results were mixed, with both revenue and adjusted EBITDA falling short of market expectations. While there was positive growth in the U.S. Integrated Care membership, broader margin pressures, particularly in the BetterHelp segment, remain a concern.
Additionally, Teladoc’s initial guidance for 2025 was generally weak, with revenue projections aligning with expectations but adjusted EBITDA forecasts falling below consensus. The shift in virtual therapy towards insurance coverage is expected to impact the direct-to-consumer therapy segment, potentially weakening lifetime value to customer acquisition cost trends. Despite some positive signs, such as implied improvements in free cash flow, these challenges contribute to the Hold rating as the company navigates its strategic priorities and market conditions.
According to TipRanks, Lutz is a 5-star analyst with an average return of 10.5% and a 67.93% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Teladoc, Hims & Hers Health, and Cardinal Health.