Deutsche Bank Upgrades Teladoc on Valuation and BetterHelp Strategy

Deutsche Bank upgraded Teladoc Health (NYSE:TDOC) to Buy from Hold and set a price target of $11. Shares rose more than 4% intra-day Tuesday following the upgrade.

The firm said the upgrade reflected what it views as an attractive valuation, a credible turnaround strategy for the BetterHelp segment, and a recent comparable transaction that highlighted a potential path for unlocking value.

Teladoc shares currently trade at about 4.2 times Deutsche Bank’s 2026 EBITDA estimate, among the lowest multiples in the firm’s coverage universe. The analyst noted that such valuations are typically reserved for companies facing existential risks, which it believes does not apply to Teladoc’s expanding Integrated Care segment.

Although the BetterHelp business has been experiencing declines, Deutsche Bank said management has introduced a strategy aimed at stabilizing and eventually growing the segment by transitioning from a cash-pay model toward insurance-covered therapy services.

The analyst added that demand for insured therapy services has been rising, pointing to Universal Health Services’ recent acquisition of Talkspace — a BetterHelp competitor in the insured therapy market — as evidence of the segment’s value. The implied valuation from that transaction suggests potential upside relative to Teladoc’s current share price.