Teladoc needs more examination

Whirly lollipop on orange background.

It's no surprise that the "uber for doctors" had a hit IPO - pricing above-the-range at $19 and opening at $29.

Our IV estimate of $11 is far less exciting though. Why so low? The model itself is below but the key obstacles are just good (not stellar) revenue growth and low operating margins for some years to come. (Management is targeting break-even in 2017.) To buy stock at $30 an investor needs a two-year time horizon to get a 20% return and has at least 50% downside . . .

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