Needham analyst Ryan MacDonald has reiterated their neutral stance on TDOC stock, giving a Hold rating yesterday.
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Ryan MacDonald has given his Hold rating due to a combination of factors that emerged from Teladoc’s recent performance and future outlook. The company’s third-quarter results aligned with previously announced metrics, but the focus on investments for fiscal year 2026 has led to a downward revision of revenue and EBITDA projections for fiscal year 2025. This shift in priorities suggests that while the company’s turnaround strategies are promising, they are not yet translating into immediate financial gains.
Additionally, Teladoc’s BetterHelp service is expanding its insurance-based offerings across more states, which is a positive development, but it has not yet compensated for the decline in U.S. cash-pay revenues. The Integrated Care segment shows stable membership and a return to quarter-over-quarter growth, yet the anticipated benefits of these efforts are not expected to materialize until 2026. The limited visibility into the growth trajectory of BetterHelp and the Integrated Care segment, compounded by a transition in the CFO position, has led MacDonald to adopt a cautious stance, opting to wait for clearer signs of fundamental improvement before adjusting the rating.
MacDonald covers the Technology sector, focusing on stocks such as Duolingo, Liveperson, and Yext. According to TipRanks, MacDonald has an average return of 3.5% and a 45.09% success rate on recommended stocks.