How soon will Teladoc Health telemedicine specialists return to growth?
After a powerful rally in 2020, one of the telemedicine leaders in the USA, Teladoc Health Inc. (TDOC), lost about half of its value. However, the decline is not related to the performance of the company. Most likely, Wall Street analysts felt that Teladoc Health shares.
Teladoc Health Inc. is trading 65% below 52-week highs. Currently, Wall Street analysts evaluate Teladoc Health shares differently, but most recommendations can be called positive — “above the market” and “buy.” However, even despite these recommendations, Wall Street preferred to lower expectations. For example, Piper Sandler dropped the target price from $291 to $183, Oppenheimer lowered the target price to $200, and Needham – to $170. But as you can see, even reduced recommendations suggest growth.
The company remains the leader in telemedicine in the United States by a considerable margin from competitors. Last year, interest in Teladoc Health shares was associated with the COVID-19 pandemic, which canceled many scheduled visits to healthcare institutions.
But the telemedicine platform continues to attract users even after many hospitals have restored the admission of patients for consultations and scheduled procedures.
The fact is that the primary growth factors of Teladoc Health — the shortage of doctors and the aging of the population — have remained unchanged and do not directly depend on the course of the pandemic.
Teladoc Health recently announced that it expects revenue of just over $2 billion in 2021. But by the fiscal year 2024, management expects total income to exceed $4 billion, as the average revenue growth rate will be from 25% to 30%. Thus, a sharp decline in Teladoc Health shares may be a good time to buy promising securities.
The company is a leader in the market, which is still at the initial stages and is far from realizing at least half of its potential. At the auction on November 26, the TDOC share was worth $106.
