Is talk a good buy. What would be a buy point if it drops

**Talkspace (TALK) appears to be a good buy** with several key indicators and analyst ratings supporting its potential. Here's a detailed analysis: 1. **Recent Performance and Growth Prospects**: - Talkspace has reported significant revenue growth, with a 34% increase last year and a 29% year-over-year growth in the second quarter. - The company is nearing profitability, which signals a potential valuation rerate and offers meaningful upside. 2. **Strategic Partnerships and Market Position**: - Talkspace's strategic payor partnerships, expanding Medicare availability, and marketing efforts focused on insurance benefits awareness position it well for future growth. - The company's virtual behavioral health services and partnerships, such as with Amazon, are key growth drivers. 3. **Financial Health and Valuation**: - Talkspace has a market cap of $354.9 million and is debt-free, with a cheap valuation and growth potential making it an attractive investment. - The P/S ratio of 2.3x is high but justified by the company's revenue growth and expected performance. 4. **Analyst Ratings and Price Targets**: - The consensus rating is "Neutral" with an average price target of $3.50, which represents a 59.82% upside from the last price. - Analysts have set a 12-month forecast average price target of $3.50, with a high forecast of $5.00 and a low of $2.00, indicating a potential upside. 5. **Buy Point Considerations**: - **Support Level**: If TALK drops, look for support levels around the $2.45 mark, which is the current closing price. - **Moving Averages**: The stock's 5-Day, 10-Day, 50-Day, and 200-Day moving averages are $2.45, $2.46, $1.90, and $2.53, respectively. The 50-Day and 200-Day moving averages could act as potential buy points if the stock drops towards or below these levels. - **RSI and MACD**: The RSI is at 66.43, which is neither overbought nor oversold, and the MACD is at 0.04. These indicators suggest that the stock is neither trending nor experiencing significant momentum, which could be a neutral point for buying if the stock drops. 6. **Market Sentiment and Fundamentals**: Despite recent gains, the market sentiment remains positive due to the company's growth prospects and strategic initiatives. The absence of debt and the potential for a valuation rerate support a strong buy decision if the stock drops. In conclusion, if Talkspace drops, a buy point could be considered around the $2.45 to $2.50 range, considering the support levels, moving averages, and market sentiment. However, investors should closely monitor the stock's performance and consider their risk tolerance, as the high P/S ratio and recent volatility suggest that there is a risk of a pullback.