Livongo Health Inc. (LVGO) PT Raised to $70 at Needham & Company as Market Expands to Fully Insured

Needham & Company analyst Scott Berg raised the price target on Livongo Health Inc. (NASDAQ: LVGO) to $70.00 (from $55.00) after speaking with Glenn Tullman (Chairman) and Zane Burke (CEO) at the Needham Tech & Media Conference. The company's target market has been with self-insured clients to date and has now expanded to include fully-insured clients as a covered benefit.

The analyst maintained a Buy rating, stating "We anticipate multi-product sales to increase significantly over 2020 due to a combined understanding of the danger of COVID-19 and general growing awareness regarding the risks of chronic conditions. Importantly, the ASP uplift on these others products is meaningful and discounting is limited. Management discussed an ASP for Livongo for Diabetes of just under $70/month per member, while hypertension is $40/month and weight management is $65/month. With very limited penetration of these products in the Livongo for Diabetes customer base, we believe the revenue uplift from multi-product adoption can be significant".

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