What happened
Teladoc Health (TDOC -1.52%) ended the week on a high note. The bellwether telehealth stock rose by more than 5% on Friday, well outpacing the marginal gain of the S&P 500 index, on the back of a slight price-target lift by an analyst.
So what
Before market open, Berenberg prognosticator Ravi Misra added $1 to his price target on Teladoc stock; this now stands at $42 per share. In doing so, Misra is maintaining his buy recommendation on the shares.
It wasn't immediately apparent why Misra was bumping his price target. Investors are still wary of a great many stocks, despite the market's overall decent performance on Friday. That said, it's possible that more than a few are re-evaluating certain stocks that have taken big hits during the downturns of recent days.
Teladoc would certainly be a fine candidate for re-evaluation. A onetime darling coronavirus stock, it's been abandoned by many bulls as the world attempts to move past the pandemic. In-person doctor and clinic visits are now commonplace, so the need for the remote healthcare services Teladoc provides has declined notably.
One big indicator of Teladoc's struggles is its fundamentals. Late last year, the company said it aimed to improve its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin steadily over the coming years. But it's been going in the opposite direction in recently reported quarters despite continued growth in both its membership rolls and total visits.
Now what
Although Friday's price pop was encouraging, Teladoc is far from being out of the woods. Investors are growing impatient to see more meaningful growth from the company and improved fundamentals -- higher operational metrics are nice, but at the end of the day it's those profitability figures that are really going to count.
