Bank of America has revised its price target for Teladoc Health (TDOC, Financial) shares, lowering it from $9.50 to $8 while maintaining a Neutral rating. This adjustment reflects recent trends observed in Teladoc's BetterHelp service, which have shown a decline over the past three months.
The latest indicators reveal a weaker monthly active user trajectory in March, suggesting that BetterHelp's revenue growth for the first quarter is expected to be at the lower end of the company's guidance range of negative 13.5% to negative 9%. This situation has prompted the firm to reassess its expectations for Teladoc's short-term performance.
Despite these challenges, Teladoc is actively pursuing new strategic initiatives. Recently, the company has announced several key partnerships and acquisitions aimed at bolstering its market position. Among these developments is an integration with pharmaceutical giant Eli Lilly (LLY), a partnership with Amazon (AMZN), and the acquisition of Catapult Health.
The analyst at BofA is closely monitoring these initiatives for their potential contributions to Teladoc's growth strategy. However, given the early stages of these programs, the full impact on the company's financial performance remains to be seen. Additionally, the decision to lower the price target also accounts for lower peer multiples within the industry. Consequently, investors are advised to watch Teladoc's execution in these strategic areas closely.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Teladoc Health Inc (TDOC, Financial) is $10.37 with a high estimate of $14.00 and a low estimate of $8.00. The average target implies an upside of 43.21% from the current price of $7.24. More detailed estimate data can be found on the Teladoc Health Inc (TDOC) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Teladoc Health Inc's (TDOC, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Teladoc Health Inc (TDOC, Financial) in one year is $21.70, suggesting a upside of 199.72% from the current price of $7.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Teladoc Health Inc (TDOC) Summary page.
