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Investing.com - Teladoc Health Inc (NYSE:TDOC) received a reiterated Hold rating from Stifel on Wednesday, with the firm maintaining its $8.00 price target for the telehealth provider. According to InvestingPro data, the stock is currently trading below its Fair Value, with shares down over 12% in the past week alone.
Teladoc reported second-quarter results with a modest revenue beat, though organic revenue declined 3-4% on a constant currency basis. The company delivered approximately $70 million in EBITDA, exceeding the consensus estimate of $63 million. InvestingPro data shows the company maintains a healthy gross profit margin of 70.5%, though it faces profitability challenges with negative earnings expected this year.
International operations emerged as Teladoc’s primary growth driver, expanding 10-11%, while U.S. business continued to contract by 4%. The company’s BetterHelp segment, representing 38% of revenue, faces competitive pressures, while its Integrated Care unit (62% of revenue) confronts broader secular challenges. Despite these headwinds, the company maintains a solid current ratio of 1.68, indicating adequate liquidity to manage near-term obligations.
Teladoc’s 2025 guidance projects organic revenue to decline 4-5% on a constant currency basis, with EBITDA of approximately $280 million, largely in line with expectations but slightly improved from previous forecasts.
Stifel highlighted two potential growth initiatives: integrating insurance payments for BetterHelp members to increase penetration and reduce churn, and using technology to transform the Integrated Care segment from a transactional urgent care model to a longitudinal relationship model covering a broader spectrum of care.
In other recent news, Teladoc reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share of -$0.19, compared to the forecast of -$0.26. The company’s revenue also exceeded projections, reaching $631.9 million against the anticipated $622.54 million. Despite these positive results, Teladoc chose not to raise its full-year 2025 guidance. Needham reiterated its Hold rating on Teladoc following the earnings report. Meanwhile, Cantor Fitzgerald lowered its price target for Teladoc from $12 to $10, citing challenges in the company’s BetterHelp mental health service. Cantor Fitzgerald also adjusted its EBITDA estimates for Teladoc, reducing them to $266 million for 2025 and $290 million for 2026. These developments reflect ongoing evaluations by analysts regarding Teladoc’s financial outlook and strategic positioning.
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