On Monday, Truist Securities adjusted its price target for Teladoc Health Inc. (NYSE:TDOC), a telehealth company, lowering it to $15 from the previous $17. The firm has maintained a Hold rating on the stock.
Following Teladoc's recent earnings release, Truist Securities engaged in a post-earnings follow-up call with the company's management. The discussion centered on several key topics, including growth trends in the BetterHelp and Integrated Care segments, and the company's approach to portfolio rationalization after recent leadership changes.
During the call, Truist Securities sought to gain insights into Teladoc's strategic direction and operational focus. The analyst from Truist Securities compiled the questions posed to Teladoc's management and the responses received, presenting them in a conversational format. While the responses were not quoted directly, they were contextualized to reflect the substance of the exchange accurately.
The revised price target of $15 reflects the latest assessment by Truist Securities, taking into account the information and perspectives shared by Teladoc's management during the call. The Hold rating suggests that Truist Securities advises investors to maintain their current position in Teladoc shares without increasing or decreasing their holdings at this time.
InvestingPro Insights
In light of the recent price target adjustment by Truist Securities for Teladoc Health Inc. (NYSE:TDOC), it's beneficial to consider additional insights from InvestingPro. Real-time data indicates that Teladoc has a market capitalization of approximately $2.21 billion, and it's trading near its 52-week low. The company's revenue for the last twelve months as of Q1 2024 stands at $2.619 billion, reflecting a growth of 6.01%. Despite this growth, Teladoc is not profitable over the last twelve months, and analysts do not expect the company to turn a profit this year.
From an investment standpoint, Teladoc's valuation implies a strong free cash flow yield, which could be appealing to investors looking for potential cash-generating assets. Additionally, the company's liquid assets surpass its short-term obligations, suggesting a solid liquidity position. However, the company is trading at a high EBITDA valuation multiple and does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
For those interested in a deeper analysis, there are more InvestingPro Tips available for Teladoc, which could provide further clarity on whether to hold, buy, or sell the stock. With the use of the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. Currently, there are 7 additional InvestingPro Tips listed for Teladoc, offering a comprehensive view of the company's financial health and market position.
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