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

LifeMD

05/06/2024 19:04

** Shares of LifeMD Inc  LFMD.O  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  MED.N 
    ** 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))