Allen Lutz, an analyst from Bank of America Securities, maintained the Hold rating on Teladoc. The associated price target remains the same with $8.50.
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Allen Lutz has given his Hold rating due to a combination of factors influencing Teladoc’s performance. The company is experiencing a mixed trend in its segments, with BetterHelp’s monthly active users (MAUs) declining both in the U.S. and internationally, which raises concerns about its near-term trajectory. This decline is attributed to factors such as the transition to insurance coverage, reduced advertising spend, and ongoing consumer pressures.
On the other hand, the Livongo segment shows promising growth, with a significant increase in MAUs, suggesting a potential revenue beat for the Chronic Care segment. Despite the positive momentum in Livongo, the overall cautious outlook is maintained due to the challenges faced by BetterHelp and the core business margins. Consequently, the Hold rating reflects a balanced view of potential growth in Livongo against the backdrop of BetterHelp’s struggles, with a price objective set at $8.50.
In another report released on September 12, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $8.00 price target.