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Teladoc Health Stock Pops - Here's Why
Benzinga· 2026-03-10 14:49
Core Viewpoint - Teladoc Health Inc. reported stronger-than-expected quarterly results, with a notable increase in sales despite a projected loss for the upcoming quarters [2][3]. Financial Performance - In the latest quarterly report, Teladoc Health posted a loss of 14 cents per share, which was better than the consensus loss of 18 cents [2]. - Sales reached $642.27 million, exceeding the expected $635.24 million, driven by a 24% increase in other revenue streams, although access fees revenue declined by 4% [2]. - For Q1 2026, Teladoc expects a loss between 35-45 cents per share and sales of $598-$620 million, compared to the consensus loss of 25 cents and sales of $633.75 million [3]. - The fiscal 2026 outlook includes a projected loss of 70 cents to $1.10 per share and sales between $2.47 billion to $2.59 billion, against the consensus of 76 cents and $2.55 billion [3]. Analyst Reactions - Deutsche Bank upgraded Teladoc from Hold to Buy, citing compelling valuation and potential exit scenarios, with a price forecast of $11 [4]. - BTIG remains cautious, maintaining a Neutral rating, highlighting concerns over the macro environment and market saturation [4]. - Oppenheimer reiterated an Outperform rating but lowered the price target from $12 to $7, while Citigroup maintained a Neutral rating with a reduced target from $9 to $6 [5]. - Other analysts, including Piper Sandler and BMO Capital, also adjusted their price targets downward while maintaining their respective ratings [5][6]. Stock Performance - Teladoc shares are currently trading 21.8% above their 20-day simple moving average (SMA) but 12.5% below their 100-day SMA, indicating short-term strength amidst long-term struggles [7]. - Over the past year, shares have decreased by 40.65% and are closer to their 52-week lows than highs [7]. - The Relative Strength Index (RSI) is at 52.22, indicating neutral territory, while the MACD shows bullish momentum at -0.1341, above its signal line [8][9]. Price Action - As of the latest publication, Teladoc shares were up 5.57% at $5.59 [10]. - Key resistance level is identified at $6.50, with key support at $5.00 [10].