Insights

Why Teladoc Health Flew 9% Higher on Friday

What happened
To butcher an old saying, a rising tide lifts most boats. A surging stock market helped push shares of Teladoc Health (NYSE: TDOC) higher by more than 9% on Friday. But bullish investor sentiment wasn’t the only reason for that gain; an analyst’s price-target increase also helped.
So what
That increase was hardly dramatic, but it drew attention to Teladoc and helped bring investors back to the stock. The raiser was Piper Sandler prognosticator Jessica Tassan, who now thinks the shares are worth $42, a bump from her previous estimation of $41. She is maintaining her overweight (buy) recommendation on the stock.
Image source: Getty Images.

According to analyst-recommendation tracking website TheFly.com, Tassan made the adjustment on the basis of conversations with Teladoc officials and an analysis of the direct-to-consumer healthcare market, among other factors.
This resulted in the tweaking of estimates for the company’s BetterHelp and Chronic Condition businesses.
Now what
Could this be the start of a bull run for Teladoc stock? After all, it’s generally been beaten down over the past year, to the point where it hit all-time lows recently. Many investors see it as a pandemic stock with weaker potential now that the coronavirus threat seems as if it might be receding. A massive $6.6 billion goodwill charge in its most recently reported quarter and reduced 2022 guidance for crucial line items like revenue and net loss didn’t help matters.
What also hurts is that, Tassan’s price-target bump aside, many Teladoc analysts have grown more sour on the stock. Wells Fargo and Citigroup, to name two, both downgraded their recommendations on the shares to the equivalent of neutral while dramatically cutting their price targets.
It’s too soon to tell whether this is the beginning of a rally in the shares, but it’s clear that there are plenty of bulls behind the stock. Perhaps they’ll at least support its price as we (hopefully) emerge from the pandemic.
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teladoc Health. The Motley Fool has a disclosure policy. –

What happened

To butcher an old saying, a rising tide lifts most boats. A surging stock market helped push shares of Teladoc Health (NYSE: TDOC) higher by more than 9% on Friday. But bullish investor sentiment wasn’t the only reason for that gain; an analyst’s price-target increase also helped.

So what

That increase was hardly dramatic, but it drew attention to Teladoc and helped bring investors back to the stock. The raiser was Piper Sandler prognosticator Jessica Tassan, who now thinks the shares are worth $42, a bump from her previous estimation of $41. She is maintaining her overweight (buy) recommendation on the stock.

Image source: Getty Images.

According to analyst-recommendation tracking website TheFly.com, Tassan made the adjustment on the basis of conversations with Teladoc officials and an analysis of the direct-to-consumer healthcare market, among other factors.

This resulted in the tweaking of estimates for the company’s BetterHelp and Chronic Condition businesses.

Now what

Could this be the start of a bull run for Teladoc stock? After all, it’s generally been beaten down over the past year, to the point where it hit all-time lows recently. Many investors see it as a pandemic stock with weaker potential now that the coronavirus threat seems as if it might be receding. A massive $6.6 billion goodwill charge in its most recently reported quarter and reduced 2022 guidance for crucial line items like revenue and net loss didn’t help matters.

What also hurts is that, Tassan’s price-target bump aside, many Teladoc analysts have grown more sour on the stock. Wells Fargo and Citigroup, to name two, both downgraded their recommendations on the shares to the equivalent of neutral while dramatically cutting their price targets.

It’s too soon to tell whether this is the beginning of a rally in the shares, but it’s clear that there are plenty of bulls behind the stock. Perhaps they’ll at least support its price as we (hopefully) emerge from the pandemic.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teladoc Health. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!