Teladoc Healthof (TDOC -8.87%) Stocks were no indication of financial health on Wednesday. Investors fell nearly 9% after analysts downgraded the stock with recommended ratings.
Its analyst, Guggenheim’s Sandy Draper, has downgraded Teladoc’s recommendation to sell from a previous neutral with a price target of $25 a share. Even after Wednesday’s drop, this means the stock’s level has fallen more than 30% of his.
Draper feels Teladoc is still overexposed to the consumer segment. Of course, as a telemedicine service provider, we are not particularly restricted by borders. On business spending, the analyst wrote of a “challenging macro environment that is prolonging the sales cycle in corporate decision-making.”
Teladoc is a star healthcare stock that has lost its luster. It was a hot item during the coronavirus pandemic as telemedicine solutions became a viable option in a world of closed offices. There is a growing sense that the company’s best days are past.
However, it’s important to note that Teladoc still has a small following. This crowd includes many analysts, some of whom are unhesitatingly bullish. One, he’s DA Davidson’s Robert Simmons, and late last week he started covering Teladoc shares with a buy recommendation with a target price of $45 per share. In his research notes, Simmons said the scale and diversity of telemedicine the company has achieved will continue to drive future growth.
Eric Volkman has no positions in any of the mentioned stocks. The Motley Fool holds positions in and recommends Teladoc Health. The Motley Fool’s U.S. headquarters has a disclosure policy.