Teladoc: Maybe This Goose Isn’t Cooked Yet (Rating Upgrade)

Summary:

• Teladoc Health, Inc.’s telehealth model struggles with low utilization despite its potential, leading to consistent operating losses and a declining average revenue per member.
• New CEO Chuck Divita aims to revitalize Teladoc by enhancing value propositions, cutting costs, and potentially selling or restructuring the Better Help segment.
• Teladoc’s survival hinges on cost-cutting, maintaining integrated care clients, and resolving Better Help’s profitability issues, with a cautious outlook for 2025.
• Upgrading to “hold” from “sell” as Teladoc shows potential for a turnaround, despite ongoing challenges and a tough path to profitability.

Investment Overview

Three months ago, I shared a note on the telehealth company Teladoc (NYSE:TDOC), covering its Q2 earnings, titled “Stick A Fork In This Stock – It’s Nearly Done (For).”

My “Sell” recommendation was based

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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