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Investing.com -- Mizuho launched coverage of Teladoc (NYSE:TDOC) Health with a Neutral rating and $10 price target, flagging the company’s steady growth in Integrated Care but cautioning that near-term attrition in its BetterHelp business remains a drag.
The firm said Teladoc’s core B2B virtual care and chronic condition management offerings are showing stable growth, and the recent UpLift acquisition could help revitalize its broader behavioral health segment over time.
“In the near-term we remain concerned about the potential pace of BetterHelp attrition, particularly as consumer sentiment remains well below historical averages in 2025,” analysts at Mizuho (NYSE:MFG) added.
Mizuho projects UpLift revenue could rise from about $15 million in 2024 to over $80 million by 2028 as it gains traction with managed care payers.
Still, BetterHelp, which accounts for about 35–40% of revenue, continues to shrink as customer churn remains high and acquisition costs exceed $550 million annually.
Users typically average just two to three sessions before disengaging, and EBITDA margins are expected to fall to 5–6% in 2025, down from 19% in 2020.
Despite management’s efforts to tighten marketing efficiency, Mizuho said BetterHelp’s declining profitability is likely to keep Teladoc trading at a discount to peers.
Its $10 price target is based on 6x 2026 EBITDA of $318 million.
“We believe the recent UpLift acquisition sets TDOC up for potential stabilization in its overall virtual behavioral health franchise longer-term,” analysts added.
Mizuho’s earnings estimates are slightly ahead of consensus through 2028, but the brokerage believes investors are unlikely to reward the stock until there are signs of stabilization in BetterHelp or greater evidence of synergy with UpLift.