Piper Sandler increased its price target for Teladoc Health shares to $11 from $9 and maintained an Overweight rating. Teladoc stock was trading at $8.24 after rising 36% over the previous week, according to the report.
The revised target reflects Teladoc’s third-quarter 2026 revenue and adjusted EBITDA results, which exceeded expectations. Piper Sandler based its valuation on a 10.0x multiple of Integrated Care EBITDA, projected forward to calendar year 2027 rather than 2026.
BetterHelp’s insurance-paid business reached an annualized revenue run rate of $140 million in the third quarter. Teladoc expects that figure to reach $200 million by the end of calendar year 2027.
Piper Sandler said Integrated Care remains management’s priority and the main basis for its Overweight rating, while BetterHelp is shaping the company’s near-term investment narrative. The firm may eventually assign additional value to BetterHelp in its enterprise price target as it gains more confidence in the durability of the unit’s transition toward insurance payments.
That assessment is expected to require four full quarters of execution because of BetterHelp’s pronounced seasonality and the still-undocumented effect of changes in direct-to-consumer advertising spending on its insurance-paid business.
Teladoc’s third-quarter results included a loss of $0.15 per share, narrower than the expected $0.22 loss, and revenue of $605.1 million, above the forecast of $588.4 million. The company also raised its full-year outlook, while adjusted EBITDA increased to $79 million as its adjusted EBITDA margin expanded.
Revenue declined 3.4% year over year, reflecting weakness in BetterHelp’s cash-pay business, although insurance revenue grew significantly. Teladoc’s Integrated Care and BetterHelp segments both slightly exceeded expectations. UBS and Stifel also raised their price targets, but retained Neutral and Hold ratings, respectively, citing continuing competitive pressures.
Sources: Investing.com News.