Teladoc Health A 'Large Player In A Fast-Growing Market': Evercore ISI

Teladoc Health Inc TDOC benefits from a first-mover advantage in telehealth and has been a beneficiary of the shift to virtual care during COVID-19, according to Evercore ISI.

The Teladoc Health Analyst: Elizabeth Anderson initiated coverage of Teladoc Health with an In-Line rating and $215 price target.

The Teladoc Health Thesis: The company has a wide range of offerings for remote care, including general medicine, mental health and expert opinions, with a total addressable market of around $70 billion, Anderson said in the Tuesday initiation note.

“The recently closed Livongo transaction adds additional digital scalpels to TDOC’s surgical kit, particularly in chronic diseases such as diabetes and hypertension,” the analyst said.

These segments add $50 billion to the company’s total addressable market, she said. 

“Given the continued high interest in these areas as ways to limit healthcare costs as well as the limited customer overlap between legacy TDCO and LVGO, we see $500+ MM of revenue synergy targets as attainable by 2025.”   

Evercore expects Teladoc Health to generate more than 30% organic growth over the next few years, “with improving profitability as the company scales and achieves ~$60 MM in cost synergies.”

TDOC Price Action: Shares of Teladoc Health were up 2.79% at $205.33 at last check Tuesday.