Teladoc’s Strategic Expansion in Virtual Care: Enhancing Access and Reducing Costs

Analyst Richard Close from Canaccord Genuity maintained a Buy rating on Teladoc (TDOC – Research Report) and keeping the price target at $14.00.

Richard Close’s rating is based on Teladoc’s strategic expansion of its Comprehensive Weight Care program and P360 virtual primary care. The new initiative allows members without GLP-1 coverage to access the medication through a collaboration with LillyDirect and Gifthealth, which is expected to lower costs and reduce safety risks for members.
While the immediate impact on Teladoc’s 93.8 million U.S. Integrated Care members is uncertain, the move signifies Teladoc’s commitment to enhancing healthcare access and quality. Despite the lack of detailed enrollment figures for the P360 and Comprehensive Weight Care programs, the potential for growth exists, especially with the recent acquisition of Catapult. This expansion is seen as a positive step towards increasing member engagement and utilization of Teladoc’s services, demonstrating the company’s proactive approach to healthcare delivery.

In another report released on March 3, Goldman Sachs also maintained a Buy rating on the stock with a $13.00 price target.