Needham analyst Ryan MacDonald has maintained their neutral stance on TDOC stock, giving a Hold rating today.
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Ryan MacDonald has given his Hold rating due to a combination of factors surrounding Teladoc’s recent strategic moves and market conditions. The acquisition of Catapult Health, while strategically beneficial in enhancing Teladoc’s diagnostic services and potentially increasing its value proposition to clients, introduces elements of uncertainty. This acquisition aligns with Teladoc’s focus on expanding its business-to-business mental health services, which could be advantageous given the inclusion of depression screenings in routine checkups.
However, despite these positive strategic developments, challenges remain in the form of unpredictable performance in the BetterHelp segment and a challenging purchasing environment among payors. These factors contribute to a cautious outlook, maintaining a Hold rating on Teladoc’s stock until there is greater clarity and stability in its near-term performance.
MacDonald covers the Technology sector, focusing on stocks such as Zeta Global Holdings Corp, Duolingo, and Chegg. According to TipRanks, MacDonald has an average return of 9.3% and a 50.20% success rate on recommended stocks.
In another report released today, Bank of America Securities also maintained a Hold rating on the stock with a $11.50 price target.