** 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))
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