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Monday, Lake Street Capital Markets began covering FitLife Brands (NASDAQ:FTLF) with a positive outlook, assigning the stock a Buy rating and setting a price target of $21.00. The research firm sees potential for the company’s stock value to grow from its current price of $13.84, supported by the expansion of its existing brands and the successful integration of recent acquisitions, Mimi’s Rock and MusclePharm. The company, with a market capitalization of $127.47 million, has demonstrated strong growth with revenue increasing by 40% in the last twelve months.
FitLife Brands’ strategy to roll up various businesses in the supplement industry has been underlined as a key driver for potential earnings growth and margin expansion. Lake Street Capital Markets highlighted the company’s solid core business, which maintains a healthy 43.39% gross margin, as a foundation for acquiring and integrating attractive businesses. According to InvestingPro analysis, FTLF appears undervalued, trading at a P/E ratio of 15.16 while maintaining strong financial health scores.
The analyst from Lake Street Capital Markets noted that FitLife’s approach makes it one of the few public companies actively consolidating the supplement space. This strategy offers investors a distinct opportunity to participate in the sector’s positive trends. The firm’s coverage initiation comes on the heels of FitLife Brands’ stock having risen over 30% in the past year. InvestingPro has identified 8 additional key investment tips for FTLF, including insights about its debt levels and liquidity position.
Lake Street Capital Markets’ endorsement reflects confidence in FitLife Brands’ ability to leverage earnings and expand its valuation multiple. The analyst’s statement underscores the company’s unique position in the market and its potential for continued growth.
The price target of $21.00 suggests Lake Street Capital Markets anticipates the company’s stock to perform well, considering the strategic moves FitLife Brands has made and the overall industry trajectory. The new coverage and price target offer a fresh perspective on FitLife Brands’ market position and future prospects.
In other recent news, FitLife Brands, Inc. announced a 2-for-1 forward stock split, effectively doubling the number of outstanding shares from 4,605,108 to 9,210,216. The split is scheduled to begin trading on a split-adjusted basis on February 7, 2025. This move will not alter shareholder percentage ownership or voting power. The company filed a Form 8-K with the SEC to detail this corporate action. FitLife’s Chairman and CEO, Dayton Judd, expressed that the decision reflects the company’s confidence in its future prospects. The stock split aims to make FitLife’s shares more accessible to a broader investor base, potentially increasing daily trading volumes. The company’s common stock CUSIP number will change to 33817P405 following the split. These developments were disclosed in a press release from FitLife Brands.
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