Teladoc initiated with an Equal Weight at Stephens

Stephens analyst Jeff Garro initiated coverage of Teladoc with an Equal Weight rating and $25 price target. The stock has fallen about 90% from early 2021 highs as COVID-catalysts and sector-wide valuation multiple expansion dissipated, growth from the mid-FY20 Livongo acquisition disappointed, and margins compressed rather than expanded in FY22, the analyst tells investors in a research note. While the company has responded by breaking out BetterHelp membership and simplifying disclosures on the B2B Integrated Care segment in its potentially conservative FY23 guide, the stock still trades at a premium relative to its growth and margin profile, Stephens adds, noting that it sees a "balanced" risk-reward profile for Teladoc.