stocks Teladoc Health (New York Stock Exchange: TDOC) It has pulled back from the peak periods following the pandemic this summer, but the company’s business has not stopped growing at an amazing pace. Now that the stock has dropped to a more reasonable valuation, Baird, an investment bank, today gave it a $ 220 upgrade and target price which is 18% higher than Thursday’s closing price.
Analysts encouraged the strong and continued uptake of Teladoc’s services throughout the coronavirus pandemic. Teladoc’s network of providers provided more than 2.8 million virtual visits in the third quarter, which was more than three times the number of visits provided during the previous year.
The massive traffic volume was driven by the new patients gaining access, and the rate of use that more than doubled year after year. Despite more healthcare providers providing in-person services during the third quarter, Teladoc reported an annual use rate that was 0.5% higher than the second quarter’s numbers.
While some investors are upset by the company’s decision to merge with Livongo earlier this year, the joint business is already helping Teladoc gain new customers. New customer cross-sales that occurred before the company officially completed its acquisition of Livongo at the end of October, led Teladoc to expect at least twice as many bookings in the fourth quarter as reported in the third quarter.
Livongo helps people manage chronic health conditions with the help of devices that track health signals and provide real-time suggestions. When Teladoc made its merger offer, Livongo’s flagship diabetes service boasted about 410,000 members representing a tiny fraction of the 34.2 million Americans with diabetes.