Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com - Cantor Fitzgerald reduced its price target on Teladoc (NYSE:TDOC) to $10.00 from $12.00 on Wednesday while maintaining an Overweight rating on the telehealth company’s shares. The stock, currently trading at $7.53 with a market cap of $1.32 billion, has declined over 12% in the past week.
The firm cited ongoing headwinds in Teladoc’s BetterHelp mental health service as the primary reason for the downward revision. Cantor Fitzgerald lowered its EBITDA estimates for Teladoc to $266 million for 2025, down from a previous estimate of $283 million, and to $290 million for 2026, reduced from $316 million. According to InvestingPro data, the company currently trades at a high EBITDA multiple of 50.8x, despite not being profitable in the last twelve months.
Cantor Fitzgerald views Teladoc’s long-term growth in BetterHelp as heavily dependent on insurance coverage expansion, while seeing more pathways to sustainable growth in the company’s Integrated Care segment.
The firm believes Integrated Care has several initiatives that could potentially drive growth, but expressed a preference to see increased momentum in U.S. growth given its higher margin profile.
Cantor Fitzgerald’s reduced price target reflects the firm’s belief that "more proof is needed on a return to revenue growth in BetterHelp before the multiple lifts," despite maintaining its overall positive Overweight rating on the stock.
In other recent news, Teladoc Inc reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of -$0.19, compared to the forecasted -$0.26. The company’s revenue reached $631.9 million, slightly above the anticipated $622.54 million. Despite these positive results, Teladoc chose not to raise its full-year 2025 guidance. Needham has maintained its Hold rating on Teladoc following the earnings report. The decision to keep the rating unchanged reflects the company’s cautious outlook despite the quarterly beat. These developments highlight the company’s current financial performance and strategic decisions. Investors may note that the company exceeded both earnings and revenue expectations.
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