William Blair analyst Ryan Daniels has reiterated their bullish stance on TALK stock, giving a Buy rating on October 15.
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Ryan Daniels has given his Buy rating due to a combination of factors including Talkspace’s recent financial performance and strategic initiatives. The company reported third-quarter revenue that exceeded expectations, indicating positive momentum in their sales efforts. Despite a slight shortfall in adjusted EBITDA compared to estimates, the sequential growth in both sales and EBITDA suggests that investments in marketing, particularly in Medicare Advantage and TRICARE markets, are beginning to pay off.
Furthermore, Daniels is optimistic about Talkspace’s long-term growth prospects, particularly with its expansion into new markets such as FFS Medicare and TRICARE. He also highlights the potential for significant growth in the virtual behavioral health sector, driven by strong demand across various demographics. Additionally, Daniels dismisses concerns about increased competition in the space, suggesting that the transition to commercial sales for new entrants will take time, thus maintaining a favorable risk/reward profile for Talkspace shares.
In another report released on October 15, TD Cowen also maintained a Buy rating on the stock with a $6.00 price target.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TALK in relation to earlier this year.