Analyst Note| Dylan Finley |
After taking a fresh look at Teladoc Health, we are maintaining our no-moat rating and adjusting our moat trend rating to stable from positive. Teladoc continues to be a leader in the nascent telehealth industry, and we anticipate a 30% compound annual growth rate for the company over the next five years. However, we see intensifying competition (record venture capital funding, peer consolidation, and even Amazon), as barriers to entry are relatively low. While achieving a moat through scale on its own is difficult in an industry that could be described as commoditized, Teladoc can distinguish its offerings through its breadth of services. Following its Livongo and InTouch acquisitions in 2020, Teladoc has expanded its offering beyond virtual ambulatory and expert visits to include chronic care management and telehealth solutions for hospital systems.