Teladoc (TDOC) PT Raised to $180 at KeyBanc as Demand Accelerated into Quarter End

KeyBanc analyst Donald Hooker raised the price target on Teladoc (NYSE: TDOC) to $180.00 (from $145.00) after after the company preannounced 1Q20 of ~$180M-$181M vs. previous guidance of $167M-$172M and consensus of $173M. This range implies ~40% y/y growth (at the midpoint) with growth accelerating into the end of March, suggesting very strong growth in 2Q20. The company also has a number of “visits-included” contracts where pricing “resets” as volumes pass certain thresholds, likely resulting in “catch-up” revenue in coming quarters.

The analyst maintained an Overweight rating, stating "upside was driven by a surge of telehealth visits in March related to the COVID-19 outbreak as patients increasingly looked to engage with physicians “virtually” to avoid potentially getting infected. Visit volumes in 1Q20 are expected to be up 70% y/y to 1.8M+ (vs. previous guidance of 1.4M-1.6M)".

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