Is Teladoc Health, a telemedicine expert, poised to resume its upward trend?
Teladoc Health Inc. (TDOC) is a telemedicine company that has lost more than 60% of its value in the last year. This is due to investors’ unfavorable expectations, which are exacerbated by the reduction in the influence of pandemic causes. However, some analysts think Teladoc may recover its growth. On Friday, May 13, analysts from Piper Sandler said again that Teladoc Health shares should be bought, and they even raised their target price from $41 to $42.
Leading Wall Street investment firms, on the other hand, cut their recommendations and financial projections for Teladoc Health during April-May 2022. In response, Piper Sandler analysts talked with Teladoc Health executives and looked at the current market for medical services geared toward consumers. They then decided to keep the current recommendation but raise the target price.
Remember that during the pandemic, when polyclinics were closed to accepting patients not linked to the COVID-19 sickness, Teladoc Health was one of the fastest rising tickers. In many circumstances, telemedicine has become the sole means of acquiring medical advice. The firm quickly expanded the number of appeals and signed new contracts with employers during the epidemic quarters. Of course, it appealed to investors, who backed the rise in Teladoc Health stock prices.
Because of the reduced effect of the pandemic and decreased management forecasts for sales and profit, the stock prices are presently trading at 80% of their 52-week highs. Teladoc Health is unlikely to be able to replicate its spectacular expansion from 2020 in the near future. However, the pandemic has little bearing on the company’s long-term development prospects.
The anticipated lack of physicians and nurses, for example, may result in an increase in remote consultations, particularly from inhabitants of small towns or rural communities. Also, as the population of high-income countries ages, people who don’t do much will need more regular mental health consultations and advice.
As a result, we may argue that the pandemic was a bright light in Teladoc Health’s history but not exactly the pinnacle of Comania’s progress. Most likely, Teladoc is just at the start of a lengthy journey, but it is already a market leader with a significant edge.
