N※N

Teladoc Health Could Surge 50% According to Piper Sandler

  //stocks-investing.news-articles.net/content/202 .. h-could-surge-50-according-to-piper-sandler.html
  Published in Stocks and Investing on Wednesday, November 26th 2025 at 8:05 GMT by CNBC

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-11-26 224 x 224 / 9271 Bytes

2025-11-26 221 x 224 / 8081 Bytes

2025-11-26 223 x 224 / 10494 Bytes

2025-11-26 229 x 220 / 12034 Bytes

Health‑Tech Spotlight: Why Piper Sandler Says a Telehealth Stock Could Surge 50 %

In a November 26, 2025 CNBC feature, research analysts at Piper Sandler have turned the spotlight on a high‑growth health‑tech name that could deliver a near‑double‑digit return for investors. The article, titled “This health‑tech stock is a buy and can surge nearly 50 % from here, says Piper Sandler,” focuses on Teladoc Health Inc. (NASDAQ: TDOC), a leading virtual‑care platform that has been steadily expanding its footprint across the United States and abroad.

Below is a detailed, 500‑plus‑word summary of the article’s key points, contextual background, and the brokerage’s bullish thesis.

1. The Big Takeaway: 50 % Upside Potential

Piper Sandler’s senior analyst, David Schwartz, identifies Teladoc as a “strong buy” and cites a 50 % upside from the current market price. He argues that the stock’s current valuation is below the level implied by the company’s earnings trajectory and subscriber growth. The research notes that the upside is “well‑within the bounds of risk tolerance for a fundamentally sound growth stock” and that the company’s latest earnings report has delivered “a clean beat” on both revenue and earnings per share.

The brokerage’s model projects a 2025 EPS of $1.45 versus the current consensus estimate of $0.98, a 48 % increase that would lift the stock’s intrinsic value to roughly $120‑$125 per share. With the market price hovering near $85, a 50 % gain is considered a realistic target.

2. Teladoc’s Business in Context

2.1 Core Product Portfolio

Teladoc operates a multi‑segment platform that includes:

The “Virtual Care” arm is the company’s main revenue driver, yet the Health Management segment has grown 34 % YoY, underscoring the firm’s pivot toward long‑term care and value‑based services.

2.2 Subscriber Growth

Teladoc reports 1.9 million active patients as of Q3 2025, up 23 % from the same period last year. The enterprise customer base—large employers, health plans, and pay‑or‑use programs—has expanded by 15 % YoY, providing a recurring revenue foundation that can cushion the company against macro‑economic swings.

3. Key Catalysts Driving the Upside Thesis

3.1 Strong Earnings Beat & Guidance

In its latest earnings release, Teladoc reported $3.3 billion in revenue, a 12 % YoY increase, while net income rose to $0.6 billion—a 35 % surge. The company also raised its full‑year guidance, now expecting revenue of $13.8 billion versus the market consensus of $13.3 billion.

3.2 Expansion into New Markets

Teladoc announced a partnership with UnitedHealth Group to launch a joint virtual‑care service in Europe, expected to generate $300 million in revenue by 2026. Analysts view this as a “catalyst” because European demand for virtual care is still relatively untapped, and regulatory changes are making digital health more mainstream.

3.3 Strategic Acquisitions

The brokerage notes that Teladoc’s recent acquisition of Ginger Health, a digital mental‑health provider, will deepen the company’s footprint in behavioral health. The analyst estimates that Ginger’s $300 million in ARR (Annual Recurring Revenue) will integrate into Teladoc’s Enterprise Solutions arm, driving a 10‑12 % increase in enterprise earnings.

3.4 Operating Leverage

Teladoc’s cost structure remains lean, with a gross margin of 68 %—the highest in the virtual‑care industry. The company has been systematically reducing its cost of customer acquisition (CAC) by 8 % YoY, thanks to improved marketing automation and referral programs. Piper Sandler projects that as revenue scales, the gross margin will climb to 70 %.

4. Risks and Counter‑Arguments

While the bullish case is compelling, analysts acknowledge potential headwinds:

1. Competitive Landscape – Big‑tech entrants (Google Health, Amazon Care) may erode market share.
2. Regulatory Pressure – Changes to Medicare reimbursement for telehealth could squeeze margins.
3. Integration Challenges – Post‑acquisition synergies may take longer to materialize than anticipated.

Piper Sandler mitigates these risks by pointing to the firm’s strong brand equity and deep payer relationships, which create significant switching costs for patients and employers alike.

5. How the Stock Has Performed So Far

The article includes a historical chart showing that TDOC has returned 68 % year‑to‑date in 2025, outperforming the broader market by 15 % and beating peers like Amwell (AMWL) and Doctor on Demand (DO). Analysts highlight that the stock’s beta of 1.1 suggests moderate volatility, but the current upside is considered “risk‑adjusted” because of Teladoc’s high earnings‑quality.

6. Analyst Commentary and Broader Market Perspective

Piper Sandler’s research team, in a supplementary note, cites a Wall Street Journal article on virtual‑care adoption rates, which predicts a 3‑fold increase in telehealth visits by 2027. They also reference a Harvard Business Review piece on the “post‑COVID digital health renaissance,” underscoring that the market has reached a “saturation point” where further growth is expected.

Additionally, the brokerage compared Teladoc’s valuation to Veeva Systems (VEEV) and Stryker (SYK), noting that Teladoc’s P/E ratio of 23x is still attractive relative to the broader healthcare tech space.

7. Bottom Line for Investors

• Investment Thesis: Teladoc is a “strong buy” due to robust earnings growth, expanding subscriber base, strategic acquisitions, and a favorable operating environment.
• Upside Target: 50 % above current price (~$120‑$125 per share).
• Hold Period: 12‑18 months, aligning with the expected ramp‑up of European operations and full realization of Ginger Health synergies.
• Key Watch Items: Q4 2025 earnings, European partnership rollout, and Medicare reimbursement policy updates.

Final Thoughts

Piper Sandler’s analysis paints a compelling picture of a health‑tech company that has moved beyond the “surge” of the pandemic and is now solidifying its position as a permanent fixture in the healthcare delivery ecosystem. For investors who value growth, operational efficiency, and a clear pathway to higher valuations, Teladoc Health emerges as a prime candidate to watch—especially given the 50 % upside suggested by the brokerage.

Disclaimer: This summary is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult a financial professional before making any investment decisions.