By Sam Boughedda
Investing.com -- Teladoc Inc (NYSE:TDOC) shares gained in early Thursday trading after Guggenheim initiated a Buy rating on the company's shares.
Analyst Sandy Draper set a price target of $96, telling investors in a note that they believe "healthcare access is moving more toward digital interactions, and TDOC’s broad suite of services addresses more touch points than any other provider."
Teladoc shares surged during the pandemic as lockdowns forced people to utilize telehealth services. However, they have since fallen to pre-pandemic levels.
Draper acknowledged the pandemic caused a short-term upswing in awareness and utilization, but added that it has also accelerated the longer-term shift to broad-based adoption.
"Over the last 12 months, the stock has been under pressure over concerns of a post-COVID slowdown in utilization and slower expected future membership growth," wrote the analyst.
"We believe that growth in revenue per customer will offset slowing membership growth, and TDOC will be able to deliver 25-30% revenue growth through 2024 and 20+ % growth longer term."
Teladoc shares climbed 2.8% Thursday.