Teladoc Health Stock Jumps After Citron Research Calls It A 'Coiled Spring'

Teladoc Health Inc TDOC shares are rising Monday after Citron Research made positive comments about the company on its X account.

What Happened: Citron posted on X Monday morning that it believes Teladoc stock is a “coiled spring,” trading at a $1.2 billion valuation.

Teladoc is the biggest Telehealth company in the world and owns the top online therapy brand BetterHelp, but it has struggled with conversions because of its cash-pay model, Citron said in the post.

In late April, the company acquired UpLift, a tech-enabled provider of virtual mental health therapy, psychiatry and medication management services. The $30 million all-cash deal is expected to provide BetterHelp with the infrastructure to bill insurance and embed the service into employer plans, Medicaid and commercial networks, according to Citron.

“This isn't incremental — it's transformational,” the Andrew Left-led research firm said.

Citron highlighted comments from the company’s executive team at a Goldman conference last week in which it expects a 1% uptick in conversion to result in $40 million in annual revenue.

“That's not guidance. That's math,” Citron said. “Teladoc is removing friction, unlocking reimbursement, and finally integrating mental health into the broader healthcare system.”

Citron believes Teladoc offers an asymmetric long opportunity at current levels.

TDOC Price Action: Teladoc shares were up 5.52% at $7.28 at the time of publication Monday, according to Benzinga Pro. Teladoc has a 52-week high of $15.21 and a 52-week low of $6.35. The stock is down approximately 20% year-to-date.

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Photo: courtesy of Teladoc Health.