SVB Securities upgrades Teladoc to Outperform as bear thesis reflected in shares

As previously reported, SVB Securities analyst Stephanie Davis upgraded Teladoc to Outperform from Market Perform with a $34 price target. The firm "fully acknowledges" that the call will be met with a high level of pushback given the quarter’s miss in both 2023 and Q1 2023 guidance. While SVB expects shares will be down, with Teladoc’s bear case largely playing out over the past year and a half, it believes the valuation will fully reflect the downside scenario-effectively, and be past the final overhang. The firm sees a set-up of achievable 2023 guidance that has baked in meaningful conservatism around macro and a narrowing pool of incremental negative datapoints, all against the backdrop of 19% short interest.