What happened
It's rarely a good day for a stock when an analyst at a high-profile financial institution makes a price target cut. So it was with Teladoc Health (TDOC -2.91%) on Monday after just such a prognosticator gave its shares a bit of a whack. The company's share price fell by over 3% on the day as a result.
So what
The cutter was Goldman Sachs' Cindy Motz, who trimmed her Teladoc price target to $113 per share from the previous $120. Motz, however, is maintaining her buy recommendation on the stock.
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While that qualifies more as an adjustment than a radical change in outlook, hers is not the only price target cut in recent days. Last Monday, Cowen analyst Charles Rhyee made a far more dramatic chop, reducing his to $94 from the previous $161.
Like Motz, Rhyee is maintaining his equivalent of a buy recommendation. In a new research note, he explained that "We update our estimates to reflect 2022 guidance. We continue to believe [Teladoc] is well positioned to meet the needs of employer and other customers as a scaled and integrated telehealth platform."
Rhyee added that his adjustment was made "in light of broader market rerating across the sector."
Now what
Although investors are rarely pleased with downward price target adjustments, in the case of Teladoc on Monday, they might be overreacting.
The company's fourth-quarter results, published last month, show that it's still growing its business at encouraging rates, and has great potential to both expand its customer base and increase revenue through price hikes. Teladoc bulls, then, should probably stay the course with their stock.
