The Centers for Medicare & Medicaid Services on Friday issued a final that marks "another win" for the telemedicine industry, Piper Jaffray analyst Sean Wieland tell investors in a research note. Beginning 2020, Medicare Advantage plans will cover various telehealth services, including phone/video visits for medical or mental health needs, says the analyst. He believes there is a "strong value proposition" for health plans to promote these services to their beneficiaries, and that Teladoc is well positioned to gain from this trend. Wieland reiterates an Overweight rating on Teladoc shares with an $86 price target.

Barclays lowered the firm's price target on Teladoc to $20 from $25 and keeps an Overweight rating on the shares post the Q1 report. The shares were down post the earnings call on a print that featured a headline beat offset by a Q2 guidance miss and steep second half of the year ramp in BetterHelp revenues, the analyst tells investors in a research note. The firm sees a "show me story" but continues to believe in the inherent long term value of Teladoc's business.

Reports Q1 revenue $646.13M, consensus $637.29M. "We are pleased to report a solid start to the year, with strength in both revenue and adjusted EBITDA in the first quarter," said Mala Murthy, acting chief executive officer and chief financial officer of Teladoc Health. "During this period of transition, our team remains laser focused on our key initiatives, which include building upon our market leadership position; driving increased product penetration through our large installed base of over 90 million virtual care members; and accelerating our bottom-line performance."