Jefferies raises Nvidia stock price target to $205 on strong demand
On Wednesday, DA Davidson maintained a Neutral rating on Medifast (NYSE: NYSE:MED) shares but reduced the price target from $17.00 to $16.50. Currently trading at $14.62, the stock sits near its 52-week low of $14.76, down significantly from its high of $49.90. The adjustment follows Medifast’s fourth-quarter earnings report for 2024, which exceeded expectations. Analyst Linda Bolton Weiser highlighted the company’s recent launch of the Ascend product line in December, aimed at individuals who are currently using or have used GLP-1 weight loss drugs. According to InvestingPro analysis, the company maintains impressive gross profit margins of 73.8%.
The management team at Medifast has observed encouraging signs, referred to as "green shoots," in the company’s underlying metrics. The company maintains a strong financial position with a current ratio of 3.34, indicating ample liquidity to meet short-term obligations. Notably, the year-over-year decline in sales per Coach (NYSE:TPR) has shown improvement for the third consecutive quarter. Analysts at DA Davidson believe that if the current trends persist, Medifast might see an increase in sales per Coach year-over-year in the fourth quarter of 2025, with potential growth in the number of Coaches in the first half of 2026.
The company has issued its guidance for the first quarter of 2025, and DA Davidson has decided to keep its sales and EPS estimates for the first quarter of 2025, as well as for the full years of 2025 and 2026 unchanged. The revised price target of $16.50 is based on a valuation of three times the estimated earnings per share of $0.50 for 2026, plus $15 per share in cash and investments. InvestingPro analysis suggests the stock is currently undervalued, despite analysts forecasting a 15% revenue decline for the current year. This new target reflects a slight decrease from the previous target but indicates a continued expectation of stability in the company’s financial performance. For a deeper understanding of Medifast’s valuation and 12+ additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Medifast reported its fourth-quarter 2024 earnings, revealing a mixed financial performance. The company surpassed expectations with an earnings per share (EPS) of $0.10, against a forecast of -$0.14. However, Medifast’s revenue fell short, coming in at $119 million compared to the anticipated $131.65 million. This represents a significant year-over-year revenue decline of 37.7%. Despite the revenue miss, Medifast maintained a strong cash position with $162.3 million and no debt. The company implemented cost reduction initiatives that resulted in $21 million savings in 2024. Looking ahead, Medifast anticipates first-quarter 2025 revenue between $100 million and $120 million, with EPS guidance ranging from $0 to -$0.50. Additionally, Medifast is focusing on expanding its product offerings and improving coach productivity to adapt to the evolving weight loss market.
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