William Blair analyst Ryan Daniels has maintained their neutral stance on TDOC stock, giving a Hold rating today.
Ryan Daniels has given his Hold rating due to a combination of factors affecting Teladoc’s current financial performance and strategic positioning. The company’s recent quarterly results showed a slight decline in total sales and adjusted EBITDA compared to the previous year, indicating slower growth. Despite these challenges, Teladoc’s integrated care segment showed some improvement, but the BetterHelp segment continued to struggle with significant declines in sales and profitability.
Furthermore, the company’s acquisition of Uplift Healthcare is expected to contribute modestly to future sales, but it also led to a reduction in adjusted EBITDA and free cash flow expectations due to increased investments. Teladoc is currently in a transitional phase, focusing on enhancing profitability and capital allocation. While there is potential for future value creation through strategic initiatives, the current uncertainties and slower growth prospects justify the Hold rating.
In another report released today, Stephens also maintained a Hold rating on the stock with a $8.00 price target.