Information Provided By:
Fly News Breaks for September 23, 2019
Sep 23, 2019 | 09:28 EDT
DA Davidson analyst Linda Bolton Weiser keeps her Buy rating and $250 price target on Medifast, saying her discussions with its CFO highlighted the management's confidence in its 2019 guidance. The analyst notes that the company anticipates a re-acceleration of earnings growth in Q4 thanks to the 2% pricing and sequential gross margin lift. Weiser also points to Medifast's new Coach app launches in October in Asia and its roll-out in the U.S. in 2020, which she expects to drive further improvement in productivity that is not currently reflected in her model.
News For MED From the Last 2 Days
Feb 27, 2020 | 08:45 EST
DA Davidson analyst Linda Weiser raised the firm's price target on Medifast to $83 from $74 but keeps a Neutral rating on the shares. The analyst cites the company's Q4 earnings beat and 2020 sales growth guidance in low single digits, though she also notes that the earnings guidance range is 6% below consensus at the midpoint and its assumed SG&A leverage in Q2-Q4 may not be achieved. Weiser adds that while Medifast's dividend is unlikely to be at risk, she sees the company's free cash flow exceeding the payout by only $12M in 2020.