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Yahoo
11-07-2025
- Business
- Yahoo
BofA Remains a Hold on Teladoc Health (TDOC), Sets a PT of $8.75
Teladoc Health, Inc. (NYSE:TDOC) is one of the 13 Best Healthcare Stocks to Buy Under $10. Bank of America Securities analyst Allen Lutz reiterated a Hold rating on Teladoc Health, Inc. (NYSE:TDOC) on July 3 with a price target of $8.75, justifying it with the company's current and future performance. A doctor wearing a face mask and lab coat providing remote medical advice via video chat. The analyst reasoned that Teladoc Health, Inc. (NYSE:TDOC) is experiencing a growth slowdown, especially in its Livongo and BetterHelp segments, which underwent a drop in app downloads and monthly active users. Lutz attributed this deceleration to a rise in customer acquisition costs and a cautious consumer spending environment. However, the analyst also acknowledged that Teladoc Health, Inc.'s (NYSE:TDOC) recent acquisitions, Catapult and Uplift, are paving the way for future revenue growth despite these challenges. Lutz further stated that these initiatives are in their early stages and would require time to materialize. Similarly, other strategic initiatives, such as international expansion and insurance coverage, will also take time to make an impact, according to the analyst, supporting the cautious near-term outlook and potential for long-term growth. Teladoc Health, Inc. (NYSE:TDOC) provides virtual healthcare services and operates through two segments: BetterHelp and Teladoc Health Integrated Care. The BetterHelp sector covers its direct-to-consumer (D2C) mental health platform. Teladoc Health Integrated Care comprises a range of global virtual medical services, including specialty medical, expert medical services, general medical, mental health, chronic condition management, and more. While we acknowledge the potential of TDOC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Business Insider
07-07-2025
- Business
- Business Insider
These are the 9 healthcare startups next in line to go public, according to bankers and investors
Transcarent contracts with employers to provide health navigation and virtual care to employees. The startup looks a lot closer to an exit after a big acquisition earlier this year. The startup bought the public health benefits company Accolade in a $621 million deal that closed in April. The acquisition looks to have significantly increased Transcarent's customer base and thus made a big contribution to its top line — before the Transcarent deal, Accolade said it contracted with over 1,400 employers and health plans, and the company reported $414 million in revenue in the fiscal year 2024. Now, with Accolade on board, Transcarent says it works with over 1,700 employers and health plans. Transcarent hasn't publicly shared its revenue. The Accolade acquisition was financed by Transcarent investors including General Catalyst and CEO Glen Tullman's 62 Ventures, cash on Transcarent's balance sheet, and debt provided by JP Morgan. Transcarent has raised about $450 million since its 2020 founding, including $126 million in a Series D funding round in May 2024 at a $2.2 billion valuation. Tullman has by far the most experience with taking companies public of the CEOs on this list. Before Transcarent, he led three companies through public listings — Livongo, Allscripts, and Enterprise Systems. His success with Livongo, the diabetes care company he founded, stands out as a rare example of blockbuster digital health returns; Livongo went public in 2019 at a $2.5 billion valuation, before being acquired by Teladoc the next year for $18.5 billion, at the time the biggest deal ever in the digital health market. That experience could set Transcarent up to pursue an IPO when market conditions look favorable. Tullman told MedCity News in May 2024 that he had "no interest" in selling the company, but would consider an IPO in the future. Transcarent will have to separate itself from previous care navigation IPOs, however, including Health Catalyst, whose stock has declined more than 85% since its 2019 IPO. It'll also need to contend with Accolade's cash burn, since the health benefits company reported a net loss of $100 million in the fiscal year 2024. In a statement to BI, Tullman said Transcarent is focused on integrating its solutions to bring its AI-powered platform, called WayFinding, to more members and employers to make healthcare more accessible and affordable. "At Transcarent, our priority is meeting the needs of our Members and delivering measurable results for our clients. If we do those things well, the rest will follow," Tullman said.
Yahoo
23-06-2025
- Business
- Yahoo
Teladoc Health, Inc. (TDOC): A Bull Case Theory
We came across a bullish thesis on Teladoc Health, Inc. on High Growth Investing's Substack by Stefan Waldhauser. In this article, we will summarize the bulls' thesis on TDOC. Teladoc Health, Inc.'s share was trading at $6.90 as of June 20th. A doctor in a lab coat looking at a medical education computer screen, symbolizing digital health services. Teladoc Health (TDOC), once a pandemic-era highflyer, has suffered a staggering 97% decline in share price from its peak, now trading at just a $2 billion enterprise value despite generating $2.6 billion in revenue and turning free cash flow positive. The downfall was driven by mismanagement, over-aggressive acquisitions, and a bloated valuation, particularly the $18 billion Livongo merger that led to a record $13 billion goodwill write-off. Yet the company remains a digital health leader with two substantial segments: Integrated Care, serving 92 million members via employers and health plans, and BetterHelp, a direct-to-consumer mental health platform generating over $1 billion in annual revenue from 400,000+ subscribers. Despite high gross margins of around 60%, Teladoc has failed to achieve profitability, weighed down by amortization and strategic missteps. The recent ousting of long-time CEO Jason Gorevic and the appointment of Chuck Divita mark a potential turning point. Divita brings strong healthcare CFO experience and a more cost-conscious approach, a necessary contrast to his growth-obsessed predecessor. At under 1x EV/Sales and 6x free cash flow, Teladoc's valuation reflects deep skepticism from the market, yet also offers significant upside if the turnaround succeeds. While the new CEO's strategy is still to be revealed, the foundation—a vast customer base, solid digital infrastructure, and high-margin business—offers fertile ground for recovery. For now, Teladoc tops the author's watchlist as a classic fallen angel, representing potential for substantial gains if execution improves and market sentiment shifts back toward overlooked tech names beyond the current AI mania. Previously, we covered a bullish thesis on Teladoc Health, Inc. by Market Musings in February 2025, which highlighted the contrasting performance of Teladoc's two segments—Integrated Care's steady growth versus BetterHelp's sharp decline—and argued that the company's struggles are largely concentrated in the latter. The company's stock price has depreciated approximately 27% since our coverage. This is because BetterHelp's performance continued to drag down overall results, reinforcing concerns about segment-specific issues. The thesis still stands as Integrated Care remains resilient, with improving profitability that may eventually outweigh BetterHelp's impact. Stefan Waldhauser shares a similar view but emphasizes the broader turnaround potential under new leadership and the company's undervalued fundamentals in the context of its fallen-angel status. Teladoc Health, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held TDOC at the end of the first quarter which was 32 in the previous quarter. While we acknowledge the risk and potential of TDOC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
