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On Wednesday, BofA Securities analyst Allen Lutz revised the price target for Teladoc Health Inc. (NYSE:TDOC), reducing it to $7.00 from the previous $8.00, while maintaining a Neutral stance on the company’s shares. The stock, currently trading at $7.08, has seen its market capitalization decline to $1.24 billion. According to InvestingPro data, two analysts have recently revised their earnings estimates downward for the upcoming period. The adjustment follows a reported decrease in the global monthly active users (MAUs) for BetterHelp, Teladoc’s online counseling service, which saw a year-over-year decline of 6.1% in April. This drop represents an acceleration from the low single-digit declines observed in the previous month.
The decline in BetterHelp’s MAU growth for April was attributed to high single-digit decreases in the United States and low single-digit declines internationally. Despite these trends, Teladoc had indicated in their first-quarter 2025 earnings call that total BetterHelp users in March surpassed the count in December, which presents a contrast to the recent data from Sensor Tower. While the company maintains a healthy gross profit margin of 70.48%, InvestingPro analysis indicates the stock’s price movements remain quite volatile, with a beta of 1.83. This discrepancy suggests that the slight month-over-month decline in April MAUs could signal stronger revenue than what Sensor Tower’s trends imply, assuming other factors remain constant.
However, the overall decline in BetterHelp MAUs points to weaker trends, and Lutz expressed belief that April’s figures could indicate revenue towards the lower end of the company’s guidance. Teladoc has been actively working on performance improvement through various initiatives and the recent acquisition of UpLift, which aims to expand into benefits coverage. Nonetheless, these efforts are expected to require time before they can significantly impact the company’s performance.
In addition to the challenges faced by BetterHelp, Teladoc’s chronic care service Livongo also experienced a downturn in user engagement. Livongo’s MAUs in April fell by 17.5% year-over-year, continuing a trend of mid-teens percentage point declines over the last twelve months. Furthermore, app downloads for Livongo decreased by 21.3% year-over-year. Teladoc has anticipated a sequential decline in chronic care enrollment for the second quarter due to a previously disclosed contract loss, and the analyst conveyed a cautious outlook on the potential for enrollment growth in the latter half of the year. Despite current challenges, InvestingPro analysis suggests the stock may be undervalued, with a strong free cash flow yield of 23%. Investors seeking deeper insights can access comprehensive analysis and 6 additional ProTips through the InvestingPro platform’s detailed research reports, available for over 1,400 US stocks including Teladoc.
In other recent news, Teladoc Health Inc. reported a first-quarter 2025 net loss per share of $0.53, which was larger than analysts’ expectations of a $0.34 loss. However, the company’s revenue of $629.4 million slightly exceeded forecasts of $619.33 million, showing strong operational performance despite challenges. Teladoc also completed the strategic acquisition of Uplift, a virtual mental health provider, which is expected to enhance its BetterHelp insurance acceptance and drive growth in the behavioral health segment. Canaccord Genuity maintained a Buy rating on Teladoc, though it adjusted the stock’s price target to $12 from $14, citing the positive impact of the Uplift acquisition on customer conversion and retention.
Meanwhile, Truist Securities reduced its price target for Teladoc to $9 from $10, maintaining a Hold rating, reflecting a conservative outlook on the company’s financial performance. This decision followed Teladoc’s quarterly earnings report and strategic updates. Citi also adjusted its price target to $8 from $8.75 but retained a Buy rating, highlighting Teladoc’s international growth and the significance of the Uplift acquisition in enhancing the company’s behavioral health capabilities. Analysts from these firms have noted Teladoc’s potential for growth in the coming years, with a focus on strategic acquisitions and expanding service offerings.
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