Talkspace initiated with a Hold at Needham

Needham analyst Ryan MacDonald initiated coverage of Talkspace with a Hold rating and no price target. Talkspace is a leading online therapy platform that targets health plan, enterprise organizations and consumers to broaden access to mental health services, the analyst tells investors in a research note. The firm says persistent mental health issues during and after the pandemic created a large total addressable market for vendors like Talkspace of $53.2B – $62.4B. However, its analysis of the mental health space reveals the company’s overall penetration is weak, and that each market segment is highly competitive. To turn more positive on the stock, it awaits evidence that Talkspace can materially raise the capture rate for the 131.4M eligible lives across its payor relationships.