Analysts at Berenberg Bank provided an update on Teladoc Health, Inc. (NYSE:TDOC) following their recent call with the management of the company, who remained positive on the trends supporting Teladoc Health’s growth.

Following the fireside chat with Jason Gorevic (CEO), Mala Murthy (CFO), and David Sides (COO), the analysts believe investors continue to overlook rising utilization of members and potential PMPM upside that should follow, noting that Primary360 represents a new growth driver for the company in 2022 and should support a higher PMPM.

As a result of the meeting, the brokerage raised its price target on the company’s shares to $230 from $227, reiterating its buy rating. The company’s shares were trading more than 3% higher Tuesday afternoon.

Analysts at Berenberg Bank mentioned they believe the company will continue to benefit from the rise of telehealth, accelerated by the COVID-19 pandemic, and its market leadership position in healthcare tech is solidified by the strategic Livongo merger.