BUZZ-LifeMd rises as KeyBanc initiates at "overweight" on GLP-1 access

Reuters06-06

** Shares of LifeMD Inc up 6.1% at $7.99 on Weds after KeyBanc starts coverage at "overweight", saying telehealth services provider can see strong top and bottom-line growth

** Brokerage sets PT at $12, implying 59% upside to stock's prior close

** LFMD's weight management program fueled by GLP-1 demand to be primary driver of significant rev growth of ~35% in FY23 and ~25% in FY 25, KeyBanc analyst team led by Steve Dechert wrote in note to clients

** Class of drugs known as GLP-1 agonists mimic activity of a hormone that slows digestion and helps people feel full for longer

** KeyBanc sees improving operating leverage in combination with strong rev growth leading to improving profitability with ~8% adj EBITDA margins in FY23, increasing to ~13.5% in FY25

** LFMD also expected to benefit from new partnerships (Medifast & ASCEND), new RexMD offerings, and commercial insurance acceptance, KeyBanc said

** In Dec, LFMD announced strategic alliance with health and wellness firm Medifast

** Now, 6 brokerages are unanimously bullish on LFMD with median PT of $12, per LSEG data

** With move on the session, shares down ~3% YTD. They hit 52-week high of $12.88 about a month ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@thomsonreuters.com lance.tupper@tr.com 1-646-279-6380))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment