Teladoc (TDOC) stock falls 11% on lower guidance
15:20, 19 November 2021
Virtual healthcare company Teladoc saw its stock slide nearly 11% lower on Thursday following the company’s investor day presentation.
Teladoc expects 2021 revenue of $2.015bn–$2.025bn, which is the low end of its original guidance range and potentially lower than analyst forecasts of $2.02bn.
However, the company is still projecting big revenue gains into the future, which is providing some optimism for large gains down the road.
“Overall, we think Teladoc is adopting the right strategy as it continues to progress on its whole-person care approach and leads a shift away from the commoditized, episode-based care approach,” Oppenheimer equity researchers Michael Wiederhorn and Matt Nirenberg wrote in a report obtained by Capital.com. “We acknowledge this may take time to play out and as a result, we would be long-term buyers of the stock.”
Teladoc expects 2022 revenue of $2.6bn (£1.9bn), which is slightly up from average analyst forecasts for next year.
Furthermore, the company expects to double this year’s revenue by 2024 to reach $4bn of annual sales.
Still, it has been a rough year for the company’s stock performance. Teladoc hit highs of $308 per share in the early part of this year but has since dropped 60% to lows of $121 per share this week – just a dollar off its 52-week lows.
What is your sentiment on TDOC?
Despite the upward guidance, analysts lowered their price targets on the stock following the presentation but largely maintained buy ratings.
Citigroup was one of the most bearish moving to a price target of $175 per share from earlier predictions of $190, according to MarketBeat data. Likewise, Oppenheimer moved to a price target of $185 per share from $200.
Credit Suisse made more modest price target reductions, moving just $1 lower to $207 per share. Similarly, Stephens moved its price target to $135 per share from $140.
Even with the downward price-target revisions, based on where Teladoc is trading, there is still a 48% upside to the stock to reach average analyst estimates of $186 per share, according to MarketBeat.