Truist cuts biote stock target to $7, maintains buy rating

On Thursday, Truist Securities adjusted its outlook on biote Corp. (NASDAQ:BTMD), reducing the price target from $9.00 to $7.00, yet reaffirming a Buy rating for the company’s shares. According to InvestingPro data, biote maintains a "GREAT" overall financial health score of 3.18/5, with particularly strong performance in relative value metrics. The adjustment follows a period of operational challenges for biote, particularly related to the implementation of new software since mid-2024, which necessitated a reallocation of staff towards training rather than expanding the number of new clinics—a factor that has tempered the company’s revenue growth.

In his statement, the Truist Securities analyst acknowledged that the fourth quarter was difficult for biote, and the company’s initial guidance falling below market expectations did little to alleviate concerns. Despite these setbacks, the analyst pointed out several reasons for maintaining a positive outlook. The demand within the Bioidentical Hormone Replacement Therapy (BHRT) market remains robust, and biote continues to lead the pack against its smaller competitors. The company’s strong position is reflected in its impressive 70% gross profit margin and substantial free cash flow yield of 24%. For deeper insights into biote’s financial metrics and growth potential, InvestingPro subscribers have access to over 30 additional key indicators and analysis tools.

Moreover, the recent appointment of a new CEO with a strong background in healthcare is seen as a positive move for biote Corp. The analyst believes that the issues stemming from the software change are temporary and that the company is well-positioned to resolve them without facing significant competitive pressure.

In light of these factors, Truist Securities has revised its estimates and price target for biote stock, signaling confidence in the company’s ability to navigate through the current challenges. The new price target of $7.00 reflects a more cautious stance, yet the Buy rating indicates an expectation of the stock’s potential upside as biote works to overcome the recent operational hurdles.

In other recent news, BioTE Corp reported its fourth-quarter 2024 earnings, which showed a slight miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.10, falling short of the $0.11 forecasted by analysts. Revenue for the quarter was $49.8 million, below the expected $51.29 million, marking a negative surprise of approximately 2.8%. Despite a year-over-year revenue growth of 9%, driven by increases in procedure and dietary supplement revenues, the earnings miss overshadowed these gains. BioTE also provided a revenue guidance for 2025, setting expectations between $200 million and $280 million. The company’s strategic initiatives include the launch of the BioTRx wellness platform and expansion of manufacturing capabilities. Additionally, BioTE’s gross profit margin improved to 71.8%, reflecting cost efficiencies from vertical integration. The company remains focused on expanding its practitioner network and enhancing its product offerings to drive future growth.

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