Citi analyst Daniel Grosslight raised the price target on Teladoc (NYSE: TDOC) to $11.00 (from $10.00) while maintaining a Neutral rating.

The analyst comments "TDOC’s 3Q print was less bad than feared with BH membership stabilizing and a significant IC beat. IC revenue came in above the top end of guidance and ~2% better than our/cons estimates (+2.5% y/y), while adj. EBITDA came in ~12% above the high-end of guidance beating our/cons. estimates by 18% (+8% y/y). This was largely due (1) a prior-period billing adjustment, (2) higher than anticipated membership, and (3) visit volume strength. BH revenue was largely in-line with our/cons. expectations (10% y/y decline); however, margins significantly underperformed our/cons. expectations (41% y/y decline) on persistently high CACs. That said, we were encouraged that membership and CACs seem to have stabilized – our biggest question heading into the quarter (LINK). For the full year, TDOC maintained its IC revenue growth guidance (LSD to MSD) while raising adj. EBITDA margins by ~25bps – 35bps."