Teladoc (TDOC) Management Meetings Increase Confidence - Jefferies

Oppenheimer analyst, Mohan Naidu, said despite strong results, Teladoc (NYSE: TDOC) has underperformed due to a liquidation event caused by the sector (Digital Health) exit by one of the VC investors in Teladoc. Management expressed significant confidence in CY16 and CY17 consensus expectations, given the visibility and pipeline/selling season strength. Further, the company expects to achieve positive EBITDA in 2H’17. Behavioral services continue to gain momentum and are expected to represent over 10% of the CY16 revenue mix. Addressing the competitive landscape and the sustainability of its subscription model, the company says its current model offers the best opportunity for ROI creation for clients, as it drives awareness and utilization.

No change to Outperform rating or $25 PT.

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 $10.84 yesterday.

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