Bullish comments from a noted short-seller pushed shares of Teladoc Health (TDOC 6.19%) higher on Friday. The telemedicine services company's stock peaked with a 15.2% jump at 10:20 a.m. ET, backing down to a 10.6% gain at noon ET.

A person uses a tablet computer to talk to a doctor.

Image source: Teladoc Health.

Citron sees AI and the government shutdown as Teladoc catalysts

Famed short-selling analyst firm Citron Research posted a bullish Teladoc analysis on its X (formerly Twitter) account this morning. The firm predicts enormous growth prospects in the telehealth industry as artificial intelligence (AI) helps Teladoc and others provide faster and better services. In particular, Citron projected soaring Teladoc prices when the ongoing government shutdown ends.

The real reason Teladoc looks interesting right now

As a longtime Teladoc shareholder myself, I agree with Citron's bullish long-term view but not the shortsighted "end of the shutdown" catalyst idea. The current shutdown hubbub started just a few weeks ago, and I can't pinpoint the date of the actual Capitol Hill blockade by looking at Teladoc's stock chart.

Share prices have been sliding for years, starting from a near-$300 peak in February 2021. Even after today's sudden jump, Teladoc's stock is still down 66% over the last three years, and my position has lost 86% so far. It will take a lot more than a return to normal operations in Washington to get this struggling innovator back on track.

That said, Teladoc's stock looks tempting at a price-to-sales ratio of just 0.66 and fantastic cash profits. Over the last four quarters, Teladoc has generated $292 million of free cash flow on $2.54 billion in top-line sales. The stock is changing hands at just 5.3 times those beefy cash flows. That's a bargain in my book.

So Teladoc may very well be a good buy right now -- just not necessarily for the reasons Citron Research cites.