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Investing.com — Teladoc got a boost during the pandemic when people were doing most everything online, including seeing the doctor.
But increasing competition is creating a crowded field. Guggenheim analysts cut their rating of Teladoc Inc (NYSE:TDOC) to sell from neutral with a price target of $25, saying adjusted earnings and revenue growth would be pressured by its exposure to the consumer segment, which contributes 40% of sales.
Not all analysts agree. Just last week, D.A. Davidson started covering Teladoc with a buy rating and price target of $45, saying the company had “established itself” as a leader in telehealth.
Shares of Teladoc fell 8% on Wednesday and are down about 61% for the year.
Several larger competitors are casting a shadow over the primary care market. Amazon.com Inc (NASDAQ:AMZN) has a $4 billion deal to acquire One Medical, a primary care operator that offers telehealth.
CVS Health Corp (NYSE:CVS) also wants to move into primary care, once thought to be a suitor for One Medical and now thought to be looking to buy Signify Health Inc (NYSE:SGFY).
Walmart Inc (NYSE:WMT) operates nearly two-dozen health centers in its stores, including primary care. And rival Walgreens Boots Alliance Inc (NASDAQ:WBA) put $5 billion into primary care operator VillageMD in a deal last year.
There are also American Well Corp (NYSE:AMWL) and MDLive operating in the telehealth space. AmWell this month was chosen by CVS to operate its virtual primary care offering.
Shares of AmWell are down 22% this year.
