Hedgeye CEO Keith McCullough is adding Teladoc (TDOC) to the long side of Investing Ideas. Below is a brief note.
I guess people are selling one of our favorite Healthcare names, Teladoc (TDOC), today on hopes that the virus is over? Just #wow.
Here's an excerpt from Healthcare analyst Tom Tobin's recent Institutional Research note on the name:
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FLORIDA LOCKS IT DOWN, APP DOWNLOAD UPDATE Downloads of telemedicine apps continue to increase as the COVID-19 crisis continues to expand across the United States. The use of telemedicine has also been significantly helped by and the regulations being relaxed to allow greater use. Compared to January, March daily app downloads are up 200% to 300%. Florida is the latest state to issue orders to limit movement of state residents similar to restrictions in place elsewhere. We've also seen the entire Health Care delivery system turn to caring for COVID-19 patients, shutting down elective procedures and physician offices, leaving telemedicine the only way for patients to reach a physician. Based on our analysis of per capita ambulatory visits and Teladoc's membership, we estimate that there may be as many as ~28M ambulatory visits that could convert in 2Q20 from TDOC's membership, or 100x the number of app downloads over the last 30 days. We're obviously not modeling TDOC converts all of it, of course, but we do expect the app trend has significant headroom to add another 300,000 in April. |
Buy on red,
KM
