Teladoc Stock Has Tumbled. Goldman Sachs Sees a Major Recovery.

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Teladoc Health

stock has shed half its value in the past six months. An analyst at Goldman Sachs says it’s time to buy shares of the virtual-healthcare firm.

Teladoc (ticker: TDOC) stock was battered in 2021. Though memberships boomed as the pandemic unfolded in 2020, sending the stock up nearly 139% that year, such gains created a high bar that Teladoc struggled to clear the following year. Like many pandemic plays, the reopening and the tough comparisons for sales and memberships were too much for many investors to stomach. But Goldman analyst Cindy Motz thinks that can change.

Motz launched coverage of Teladoc stock on Friday with a Buy rating and $121 12-month price target—representing 66% upside from the close on Friday at $72.83.

“As the global leader in the virtual healthcare space, we believe Teladoc is uniquely positioned to advance the overall integration of digital into healthcare, paving the way for the healthcare technology sector to become more disruptive,” Motz wrote.

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She thinks that as the company rolls out its virtual total care product, called Primary 360, leverages its potential in the mental health space, and eventually expands internationally, the stock will represent a great way to invest in the digital integration of the healthcare sector.

Motz adds that Teladoc is in a position to penetrate some portion of the total health/primary care market with virtual services.

“Hence, to the extent one believes in this digital transition, we believe Teladoc, as industry leader, who has been at this for a while with the most comprehensive offering, and has MCO relationships, as well as other partnerships with players like

Microsoft

(MSFT), is a long-term winner in this space, paving the way for greater transformation and disruption in the overall healthcare segment,” Motz added.

Write to Connor Smith at [email protected]