 The strong momentum in Livongo Health Incs NASDAQ: LVGO business continued in the second quarter, and the companys merger with Teladoc Health Inc NYSE: TDOC will create a leading virtual health care platform, according to Needham.The Livongo Health Analyst: Scott Berg downgraded Livongo Health from Buy to Hold and eliminated the price target.The Livongo Health Thesis: Livongos revenue and member additions were meaningfully higher than its second-quarter pre-announcement on July 8, Berg said in the Thursday downgrade note. See his track record here.The company reported quarterly revenue of 91.9 million, representing 124.8 year-on-year growth and significantly higher than Needhams estimate of 86.5 million. Earnings of 11 cents per share also handsomely beat Needhams 4 cents per share estimate, the analyst said. Livongo announced plans to merge with Teladoc to create the leading consumer centered virtual care platform focused on solutions for whole-person care to improve health outcomes with lower costs, Berg said. View more earnings on LVGOThe deal, at a total of 18.5 billion, offers a premium for Livongos shares and represents a valuation of nearly 35x of fiscal 2021 revenue, the analyst said. Although the concerns around achieving the proposed sales synergies exerted pressure on Teladocs stock, the analyst Berg said management has a reasonable plan.LVGO Price Action: Shares of Livongo Health were trading 3.7 higher at 132.80 at last check Thursday. Related Links:90 Biggest Movers From YesterdayTeladoc, Livongo Health Merger Valued At .5BLatest Ratings for LVGO DateFirmActionFromTo Aug 2020NeedhamDowngradesBuyHold Jul 2020Credit SuisseInitiates Coverage OnOutperform Jul 2020CitigroupInitiates Coverage OnBuy View More Analyst Ratings for LVGO View the Latest Analyst Ratings See more from Benzinga Why BofA Is Turning Bullish On Generac Holdings Just In Time For Hurricane Season Fox Poised For More Growth In Political Ad Revenue, Needham Says After Q4 Report Tyson Foods Faces Slow Recovery In Poultry, Credit Suisse Says In DowngradeC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 