UPDATE: Canaccord Genuity Starts Teladoc (TDOC) at Buy

Canaccord Genuity initiated coverage on Teladoc (NYSE: TDOC) with a Buy rating and a price target of $24.00.

Analyst Richard Close commented, "We initiate coverage of TDOC with a BUY rating and $24 PT. TDOC is a first mover, market leader, and the only publicly traded pure-play in telemedicine. We forecast TDOC will deliver 918K (+60% y/y) telemedicine visits in 2016, which we estimate is ~2-4x its largest competitor. Given the rapid growth of telemedicine and the massive market opportunity ($31B+), we believe TDOC can continue to drive above-average top-line growth (30%+) over the next several years while reaching profitability in 4Q'17. Higher utilization should drive upside vs. consensus and could lead to multiple expansion. While the telemedicine market is likely to evolve as it matures, TDOC’s first-mover status positions it well to pivot as needed and maintain its leading market position."

For an analyst ratings summary and ratings history on Teladoc click here. For more ratings news on Teladoc click here.

Shares of Teladoc closed at $16.50 yesterday.

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