Jefferies ups Teladoc price target to $10, sees short-term opportunity in shares

Jefferies raised the firm’s price target on Teladoc to $10 from $8 and keeps a Hold rating on the shares, noting that data shows BetterHelp web traffic increased by an average of about 12% in July and August after declining in each of the previous 12 months. The firm cautions that consensus EBITDA is “modeled somewhat aggressively” due to some outlier estimates distorting it, but it sees a short-term opportunity in Teladoc shares with sentiment very negative and short interest of about 16%. However, long-term concerns “may make it hard to sustain momentum,” the analyst added.