Analyst Ratings January 27, 2026

BofA Cuts Teladoc Price Target to $7, Cites Mixed Segment Outlook

Analyst trims valuation multiple as BetterHelp trends and Chronic Care growth remain uncertain despite Integrated Care strengths

By Sofia Navarro TDOC
BofA Cuts Teladoc Price Target to $7, Cites Mixed Segment Outlook
TDOC

BofA Securities reduced its target on Teladoc Health to $7 from $7.50 while keeping a Neutral rating, citing continued uncertainty in the company’s BetterHelp and Chronic Care segments. The firm lowered its valuation multiple to 4.1x calendar year 2026 EBITDA and noted flat sequential BetterHelp user growth alongside weaker year-over-year trends. Teladoc’s recent quarter showed a slight revenue decline and a per-share net loss, even as the company expanded its 24/7 Care clinical scope and delivered a modest EBITDA beat.

Key Points

  • BofA Securities lowered its Teladoc price target to $7.00 from $7.50 and kept a Neutral rating.
  • BetterHelp monthly active users are essentially flat sequentially (+0.2% versus Q3) but down 18.7% year-over-year; management warned of a more pronounced holiday advertising pullback.
  • Teladoc reported Q3 2025 revenue of $626 million, down 2.2% year-over-year, and a net loss per share of $0.28; the company expanded its 24/7 Care clinical scope and implemented real-time specialty consultations across 30 specialties.

BofA Securities has trimmed its price target on Teladoc Health Inc. to $7.00 from $7.50 and retained a Neutral view on the shares. The change follows the firm’s assessment of near-term uncertainty across some of Teladoc’s consumer-facing and chronic-care offerings.

Teladoc shares were trading at $6.29 at the time of the note, having slid 38.39% over the prior 12 months and trading close to a 52-week low of $6.03, according to InvestingPro data. InvestingPro’s Fair Value metric suggests the stock may be trading below intrinsic value despite the recent price weakness.

BofA highlighted performance at BetterHelp, Teladoc’s direct-to-consumer mental health service. Management reported that BetterHelp’s monthly active users in the fourth quarter are tracking about 0.2% above third-quarter levels but remain approximately 18.7% below the year-ago period. The broker characterized the flat sequential activity as a modest positive, but noted that year-over-year trends have deteriorated slightly relative to the prior quarter.

Management also indicated the seasonal reduction in advertising spend over the holiday period could be more pronounced than in previous years. BofA expressed caution on the direct-to-consumer model given continued pressure from soft consumer sentiment, which it sees as weighing on BetterHelp trends.

While the research team described Teladoc’s Integrated Care business as a differentiated part of the company’s portfolio, it said there remains uncertainty around the growth path for both BetterHelp and the Chronic Care segment.

The revised $7.00 target reflects a reduction in the valuation multiple applied to Teladoc’s calendar year 2026 EBITDA. BofA lowered its multiple to 4.1x from a prior 4.5x, a move the firm attributed to lower peer multiples across the sector.


Teladoc’s own third-quarter 2025 results were part of the backdrop for recent analyst activity. The company reported consolidated revenue of $626 million, a decline of 2.2% from the year-earlier quarter, and recorded a net loss per share of $0.28 that included a non-cash goodwill impairment.

Despite the revenue decline and the reported loss, Teladoc announced enhancements to its 24/7 Care offering, expanding clinical protocols to cover areas such as pain management, hair loss, and sleep care. The company has also rolled out real-time specialty consultations across 30 specialties in an effort to improve care plans and reduce unnecessary referrals.

In the wake of the quarter, Stifel reaffirmed a Hold rating on Teladoc and kept an $8.00 price target. Separately, BofA has also been reported as having reduced a prior target to $7.50 from $8.00, pointing to the same segment-level uncertainties and identifying several key priorities for 2026: stabilizing BetterHelp’s U.S. operations, advancing international expansion, and integrating the UpLift acquisition.

Operationally, Teladoc’s expense discipline produced a modest positive surprise on EBITDA. The company delivered an EBITDA result of roughly $70 million, beating consensus expectations of $65 million by a small margin.

Overall, analysts emphasize the contrast between the differentiated aspects of Teladoc’s Integrated Care business and the unclear growth outlook for its consumer mental health and chronic care services. Investors and market participants will likely be watching execution on expense control, BetterHelp stabilization, international rollout, and integration of acquisitions as key drivers of the company’s performance going forward.

Risks

  • Ongoing deterioration in BetterHelp user trends and weaker direct-to-consumer demand could pressure consumer-facing revenue - this mainly affects healthcare technology and telehealth market segments.
  • Uncertainty in the growth trajectory for the Chronic Care segment could limit overall company expansion and profitability - this impacts chronic disease management services and payer-provider relationships in healthcare.
  • More pronounced seasonal reductions in advertising spending could slow user acquisition for BetterHelp, raising customer acquisition costs and slowing top-line recovery - this affects digital health marketing dynamics and consumer-focused health services.

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