Teladoc Health added ~11% in the premarket on Tuesday after Deutsche Bank upgraded the telehealth provider to Buy from Hold, citing a compelling valuation and improving prospects for its mental health business, BetterHelp.
Analyst George Hill wrote that he upgraded TDOC “given what we see as a compelling valuation, a deliverable strategy for the BetterHelp business, and a comparable transaction illustrating the road map as a path forward.”
“While BetterHelp has been shrinking, the company has a stabilization and growth plan for the longer term,” Bloomberg reported, quoting Hill. “While this will take some time, we view this as a better business with longer-term growth prospects,” the analyst added, maintaining his $11 target on the stock.
With over a 40% decline during the past 12 months, Teladoc (TDOC) is a Hold-rated stock on Wall Street.
However, soon after its Q4 2025 results in late February, the New York-based Health Tech was the subject of another upgrade as Bank of America upgraded it to Buy from Neutral, also citing the prospects of BetterHelp.