Market Overview

Why Goldman Sachs Is Waiting For Teladoc's Merger Story To Unfold

Why Goldman Sachs Is Waiting For Teladoc's Merger Story To Unfold

Teladoc Health Inc’s (NYSE: TDOC) acquisition of Livongo Health (NASDAQ: LVGO) was completed on Oct. 30 and has yet to generate impressive growth, according to Goldman Sachs.

The Teladoc Health Analyst: Robert Jones initiated coverage of Teladoc Health with a Neutral rating and $206 price target. 

The Teladoc Health Thesis: The company has been a beneficiary of accelerated adoption trends amid the pandemic and appears to be on track to record around 71% revenue growth organically, Jones said in the initiation note.

“Beyond this year, the story shifts to that of a combined entity where we think legacy TDOC organic growth and synergies targets appear achievable,” the analyst said. “That said, we believe the onus for meaningful upside within legacy TDOC lies on US membership growth in Health Plan lives concurrent with PMPM (per member per month) expansion, which could pose some risk.”  

Outside of the legacy Teladoc company, upside would come from synergies and legacy Livongo, which has less of a track record, according to Goldman Sachs. 

TDOC Price Action: Shares of Teladoc Health were rising 2.73% to $203.06 at last check Friday. 

Latest Ratings for TDOC

Jan 2021BTIGInitiates Coverage OnBuy
Dec 2020Evercore ISI GroupInitiates Coverage OnIn-Line
Dec 2020Stephens & Co.DowngradesOverweightEqual-Weight

View More Analyst Ratings for TDOC
View the Latest Analyst Ratings


Related Articles (TDOC)

View Comments and Join the Discussion!

Posted-In: Goldman Sachs Robert JonesAnalyst Color Health Care Price Target Initiation Analyst Ratings General Best of Benzinga

Latest Ratings

URIVertical ResearchInitiates Coverage On310.0
PCARVertical ResearchInitiates Coverage On95.0
DEVertical ResearchInitiates Coverage On345.0
CNHIVertical ResearchInitiates Coverage On16.0
AGCOVertical ResearchInitiates Coverage On119.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at