What happened
Telemedicine leader Teladoc's (TDOC -0.07%) stock price was on the rise Tuesday, which was welcome news to shareholders after its recent slump. As of 12:30 p.m. ET, Teladoc was up by 6%.
So what
There are two likely explanations for the upward move. First, the market has largely been selling off high-growth tech stocks in recent weeks, and Teladoc was not an exception to that trend. This group, though, is broadly rallying on Tuesday.
Image source: Getty Images.
Second, and more specific to Teladoc, the company was the beneficiary of a somewhat favorable analyst note. Specifically, Sean Wieland of Piper Sandler kept his overweight rating on the healthcare stock and put a $118 price target on it. I say "somewhat favorable" because Wieland's previous price target for Teladoc was $183, but his new one is still 36% higher than the current price, even after Tuesday morning's move.
Now what
While this upward move is certainly a positive development for shareholders, it's important to take analyst actions like this with a big grain of salt. Nothing has changed about the underlying business as a result of it, and the fact remains that Teladoc is still more than 70% below the all-time high it set around a year ago. Investors will get more clarity about matters in a few weeks when Teladoc reports its latest quarterly results, and we'll see how actual company-specific news impacts the stock price.
