Optum virtual care exit ‘clear positive’ for Teladoc, says BofA

BofA analyst Allen Lutz says UnitedHealth’s (UNH) Optum shutting down its virtual care business, as reported earlier today by Endpoint News, is a “clear positive” for Teladoc (TDOC). Prior to the pandemic, UnitedHealth (UNH) launched a contract with Teladoc that included 15M total members to the platform including 5M paid members, the analyst tells investors in a research note. The firm believes the competitive environment and capital investment in virtual care by competitors is likely to moderate following Optum’s departure. BofA believes today’s news will not impact Teladoc’s revenue or earnings but it does feel the company’s 90M members “could potentially grow from here.” It keeps a Neutral rating on the stock with a $17.50 price target.