Teladoc defended at Credit Suisse; says PepsiCo contract loss is old news

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  • Teladoc Health (NYSE:TDOC) dropped ~5.3% today after Cantor Fitzgerald called telehealth a commodity citing a WSJ article in which a former Pepsico executive highlighted a lost contact of the telehealth provider.
  • The contact loss is old news, argued an analyst at Credit Suisse giving the stock an outperform rating and the price target of $264.00 per share indicates a ~53.2% upside to the Friday’s close.
  • ‘PepsiCo membership has been out of TDOC’s membership for a long time,’ the analyst Jailendra Singh noted after a discussion with Teladoc management.
  • The analyst also rules out any material impact to the telehealth platform as a result given that Pepsico employed 120K staff in the U.S.
  • Despite its dominant position among firms contracting telehealth providers directly, nearly 80% of Teladoc’s membership base is formed by contracts with health insurers, the analyst estimated.
  • An upgrade to the guidance could not avert a loss in Teladoc shares after its Q1 2021 results, as the outlook indicated a slowdown.


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