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Investing.com - Canaccord Genuity raised its price target on Beachbody Company (NASDAQ:BODI) to $9.00 from $7.00 on Monday, while maintaining a Buy rating following the company’s third-quarter earnings report. The new target represents significant upside from the current stock price of $5.02, with analyst targets ranging from $4 to $13.
Beachbody reported sales of $59.9 million for the quarter, representing a 41.4% year-over-year decline but exceeding both analyst expectations and the company’s guidance range of $51 million to $58 million. Despite the revenue decline, InvestingPro data shows the company maintains impressive gross profit margins of 70.02%, though analysts anticipate continued sales decline this year.
The fitness and nutrition company posted adjusted EBITDA of $9.5 million, surpassing Canaccord’s estimate of $5.6 million and the company’s guidance of $2 million to $6 million, marking its eighth consecutive quarter of positive adjusted EBITDA. According to InvestingPro analysis, Beachbody appears undervalued based on Fair Value estimates, despite trading at a relatively high EV/EBITDA multiple of 22.25x.
Beachbody achieved positive net income for the first time since going public, with Canaccord noting the company has successfully lowered its revenue breakeven point to approximately $180 million compared to $900 million in 2022.
While sales continue to decline, Canaccord believes revenue could potentially turn positive in fiscal year 2026 due to lapping the exit of the MLM business, new product launches across nutrition and digital segments, and increased investments in digital and marketing initiatives.
In other recent news, The Beachbody Company, Inc. announced that it will transfer its Class A common stock listing from the New York Stock Exchange to the Nasdaq Capital Market. The company plans to begin trading on Nasdaq on September 3, 2025, while retaining its "BODI" trading symbol. According to Carl Daikeler, BODi’s co-founder and CEO, this strategic move aims to leverage Nasdaq’s advanced trading technology and market data services to better serve the company’s shareholders. These developments come as part of Beachbody’s efforts to optimize its trading operations. The decision to switch stock exchanges is a notable shift for the company and could potentially impact its market interactions. This move reflects a broader trend among companies seeking to benefit from Nasdaq’s technological offerings. Investors and analysts will be observing how this transition affects Beachbody’s market presence and shareholder engagement.
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