Teladoc slips as Guggenheim hands first Sell rating

Aug. 17, 2022 8:01 AM ETTeladoc Health, Inc. (TDOC)By: Dulan Lokuwithana, SA News Editor4 Comments

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  • The shares of Teladoc Health (NYSE:TDOC) lost ~4% in the pre-market trading Wednesday after Guggenheim downgraded the telehealth company to Sell from Neutral, giving it the first sell-equivalent rating on Wall Street.
  • The analysts led by Sandy Draper argue that TDOC’s revenue growth will remain under pressure due to a range of factors, including “a challenging macro environment that is elongating sales cycles in enterprise decisions.”
  • In addition, the firm highlights the impact of the strong dollar, albeit to a lesser extent, and notes that the company is reliant on the consumer, generating 40% of its revenue from the segment.
  • Guggenheim cuts the 2023 - 24 revenue and EBITDA estimates for the company to a level at the low end on the Street and hands TDOC a $25 price target, its lowest among analysts, according to Bloomberg.
  • Read: Teladoc (TDOC) gained last Friday after DA Davidson launched its coverage with a Buy recommendation, noting that its current multiple and the share price offered significant upside.

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