UPDATE: Needham & Company Downgrades Teladoc (TDOC) to Hold

Needham & Company analyst Ryan MacDonald downgraded Teladoc (NYSE: TDOC) from Buy to Hold.

The analyst comments "We are downgrading TDOC to Hold following the company's revised FY22 outlook, which now assumes the low end of their reiterated guidance, with potential for further downside. Further downside stems from an elongating employer deal pipeline, implied churn in paid membership and the elimination of 2H22 chronic condition enrollment upside. In order for TDOC to outperform the low end of guidance, we believe that consumer discretionary budgets must remain strong to drive outsized utilization in the DTC BetterHelp offering. Given macro uncertainty, inflationary pressures and deteriorating consumer sentiment, we view this outcome as unlikely. We believe these issues could persist into FY23, pushing us to the sidelines until we see signs of better pipeline conversion, stability in paid membership, and improvement in consumer sentiment."

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 $43.24 yesterday.

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