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.

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.

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Disclosure: None. This article is originally published at Insider Monkey.