Teladoc Health Stock Faces 'Durable Growth Opportunity': Here's Why

Teladoc Health Inc TDOC benefited from increased adoption of telehealth during the 2020 pandemic, according to Needham, and should be able to sustain this elevated growth “on the strength of its expansive platform.”

The Teladoc Health Analyst: Ryan MacDonald initiated coverage of Teladoc Health with a Buy rating and a price target of $235.

The Teladoc Health Thesis: While Teladoc Health’s stock trades at a premium valuation to its digital health peers, this premium multiple seems justified, MacDonald said in the initiation note.

While estimating the global telehealth market at approximately $84.5 billion, the analyst noted that the company “maintains a pole position in this market that we believe is in the early innings.”

“Despite boasting a market-leading position that includes approximately 73mm members and 14mm visits enabled, we believe that Teladoc has a long runway for growth with its existing base via increased member penetration and PMPM expansion driven by multi-product sales,” he wrote.

TDOC Price Action: Shares of Teladoc Health had risen by 2.31% to $192.45 at the time of publication Thursday.

(Photo: Teledoc)