Adding ~1% in the pre-market, the shares of Teladoc Health(NYSE:TDOC)have recovered on Wednesday from after-hours losses following the telehealth provider’s Q4 2021 results on Tuesday.
While financials for the quarter exceeded the Street forecasts, the guidance for the current quarter fell short of expectations. However, Teladoc (TDOC) set its 2022 outlook ahead of the consensus.
Commenting on the results, Barclays analysts led by Steve Valiquette note that the lower-than-expected guidance for Q1 2022 implies “a back-end loaded steep ramp in 2H22," which could "still achieve full-year projections.”
Citing the after-hours decline in company shares, Valiquette and the team argue: “Our sense is that some investors may see some risk related to the quarterly cadence that requires the steep ramp in 2H.”
Reiterating the Equal Weight rating on the stock, Barclays has cut the EV/Sales multiple to reflect a greater risk. As a result, the new price target at $77, down from $95, implies a premium of ~18% to the last close.
Meanwhile, Jefferies analyst Glen Santangelo, with a Hold rating and an $82 per share target on Teladoc (TDOC), argues that EBITDA guidance for both Q1 and full years 2022 lagged expectations.
“While we appreciate that the shares and expectations have come down in recent months, we believe there could be modest pressure as investors digest lower-than-expected profitability and implied ramp throughout,” Santangelo wrote.
Despite an Outperform rating, Oppenheimer has also lowered the price target on Teladoc (TDOC) to $130 from $160 to imply a premium of ~99% to the last close.
Defending the stock, the analyst Michael Wiederhorn wrote: “We continue to believe that Teladoc is a high risk-high reward name that will need time to play out for investors.”
“Overall, while the competitive landscape continues to toughen, we believe the large and growing telehealth pie leaves ample room for multiple competitors to thrive,” he added.
Meanwhile, Hims & Hers Health(NYSE:HIMS), another telehealth provider, is continuing to trade higher in the pre-market on Wednesday after its Q4 revenue for2021 more than doubled.
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