What happened
Shares of telehealth specialist Teladoc (TDOC +0.88%) ticked higher on Wednesday, rising as much as 4.8%. As of 2:40 p.m. ET, however, the growth stock was up more than 2.3%. The stock's gain came even as the S&5 500 was about flat for the day.
The telehealth company's shares were likely up as part of a rebound from a sharp sell-off this year.
Image source: Getty Images.
So what
Shares of Teladoc have absolutely cratered this year, falling from a high earlier this year of $308 to just $105 at the time of this writing. Shares seem to be taking a breather after surging in 2020. In fact, shares are still up 26% since Jan. 1, 2020 -- even after the stock's epic drawdown this year.
But has the stock's decline gone too far? Though Canaccord analyst Richard Close lowered his 12-month price target for the stock on Tuesday, the revised target of $160 is still 52% above where shares are trading at the time of this writing. With so much predicted upside, it's no surprise that the analyst reiterated a buy rating on the stock. Close said that he thinks the growth stock's decline has mitigated valuation risk. Further, he notes that Teladoc is a great way to invest in digital care, which he believes is just getting started.
Now what
At Teladoc's recent Investor Day, the company said it expects its fiscal 2021 revenue to come in at just over $2 billion. By fiscal 2024, however, management said it expects total revenue to cross $4 billion as its top-line growth averages a growth rate of 25% to 30%.
