Stryker shares tumble despite strong Q2 results and raised guidance
On Friday, Truist Securities revised its price target for Teladoc Health Inc (NYSE:TDOC) shares, reducing it to $9 from the previous $10, while keeping a Hold rating on the stock. The adjustment comes in the wake of Teladoc’s first-quarter earnings report and subsequent corporate updates. The stock, currently trading at $6.81, has declined over 25% year-to-date and is trading near its 52-week low of $6.35.According to InvestingPro analysis, Teladoc appears undervalued despite recent challenges. The platform offers 8 additional exclusive insights about TDOC’s valuation and growth prospects, available with a subscription.
Teladoc, a telehealth company, recently announced its quarterly results and strategic acquisition aimed at boosting BetterHelp’s insurance acceptance. With a current EV/EBITDA multiple of 48.39x and gross profit margins of 70.48%, the company maintains strong operational efficiency despite profitability challenges. Truist’s analysis led to a slight modification in the expected EBITDA for the year 2026, prompting the firm to adjust its price target accordingly. The new target reflects a 6x EV/EBITDA multiple based on the firm’s 2026 estimates.
In light of the company’s updated outlook for 2025, Truist has also updated its revenue and EBITDA forecasts for fiscal years 2025 and 2026. The revised revenue estimates now stand at $2.513 billion for 2025 and $2.614 billion for 2026, a slight decrease from the previous projections of $2.519 billion and $2.620 billion, respectively.
The firm’s EBITDA expectations have been similarly adjusted. For fiscal year 2025, the EBITDA estimate is now set at $285 million, and for 2026, it is projected to be $307 million. These figures are down from the earlier estimates of $292 million for 2025 and $313 million for 2026.
Truist’s updated model and price target reflect a conservative outlook on Teladoc’s financial performance over the next few years, taking into account the company’s strategic initiatives and market conditions.
In other recent news, Teladoc Health Inc. reported a first-quarter 2025 net loss per share of $0.53, which was below analysts’ expectations of a $0.34 loss. Despite the earnings miss, the company’s revenue for the quarter reached $629.4 million, surpassing forecasts of $619.33 million. Additionally, the company has been active in strategic acquisitions, most notably the $30 million purchase of Uplift, a virtual mental health provider. This acquisition is expected to enhance Teladoc’s Behavioral Health capabilities and expand its reach within the insured market. Analysts from Canaccord Genuity and Citi have both adjusted their price targets for Teladoc, with Canaccord lowering it to $12 and Citi to $8, while maintaining Buy ratings. The acquisition of Uplift is seen as a positive step toward growth, with expectations for improved customer conversion and retention. Teladoc’s membership has also grown, with a total of 102.5 million members, indicating potential for cross-selling opportunities. However, there was a noted decrease in Chronic Care program enrollment, which poses some concerns for the company moving forward.
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