Teladoc oversold on Aetna contract confusion, says Piper Jaffray

Piper Jaffray analyst Sean Wieland believes some confusion over Aetna’s intentions have pressured the shares of Teladoc (TDOC). The confusion lies in the fact that this was a “Request for Price” and not a “Request for Proposal,” Wieland tells investors in a research note. However, his channel checks indicate there isn’t any intention of CVS Health’s (CVS) Aetna switching vendors. To the contrary, we’ve seen companies do this in front of a contract expansion, when they need to provide the board with benchmark pricing data to prove they are not overpaying, says the analyst. As such, he believes potential risk related to Teladoc’s Aetna contract is minimal. Further, Wieland sees upside to Teladoc’s initial guidance on stronger utilization trends as “telemedicine continues to go mainstream.” He views the stock as oversold and reiterates an Overweight rating with an $86 price target.

https://thefly.com/landingPageNews.php?id=2886466