Wednesday, May 19, 2021 10:54:02 AM
LifeMD Stock Is Undervalued by Over 300%, Says Analyst
Marty Shtrubel
Marty Shtrubel
May 18, 2021, 06:22 PM
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That the stock market is a forward-thinking beast is well known, but this fact has been particularly emphasized by investors during this earnings season. While many companies have delivered excellent reports, a big chunk stumbled when providing – or even deciding to not provide – the anticipated outlook. Investors have shown that what they really what to hear is not only “that was a great quarter,” but that the business has good days ahead.
As such, LifeMD (LFMD) gave investors what they wanted to hear. The telehealth provider raised full-year revenue guidance from the $85 million to $95 million range to between $90 and $100 million. The market, in return, gave a thumbs up and sent shares higher by 35% in the subsequent session.
While the outlook is rosy, the quarter’s financials were excellent too. Revenue increased by 323% year-over-year to a record $18.2 million. GAAP EPS of -$0.47 came ahead of the estimates by $0.21. Total gross margin increased by ~1,300 bps both year-over-year and sequentially to reach 82.1%, better than Wall Street’s 77% forecast, while telemedicine orders reached over 164,000, a 373% year-over-year uptick.
One disappointing metric stood out according to BTIG analyst David Larsen.
Due to higher G&A spend and operating costs, total adjusted EBITDA of ($8.9M) fell behind the Street’s ($8.3M) estimate. However, even here, Larsen finds a silver lining.
“While the higher G&A costs are disappointing, we like how sales and marketing costs in 1Q:21 increased just slightly relative to 4Q:20,” the analyst noted.
In fact, Larsen thinks there’s a lot to like about the company right now.
“We’re impressed that the annual revenue run-rate is trending at ~$73M, the subscription rate is trending at ~92%, customer retention rates are high, and we like how management is focused on growth,” Larsen said. “We like how LFMD continues to plan launches of new brands, NavaMD was launched at the end of the quarter, and the primary care platform is expected to “go-live” this coming summer. Our view is that demand for cash-pay primary care services is high, we like how LFMD might eventually accept insurance, and it seems like LFMD appreciates how important earnings are to investors.”
To this end, Larsen rates LFMD shares a Buy along with a $40 price target. Investors could be sitting on gains of 351%, should Larsen’s forecast play out as expected over the coming months. (To watch Larsen’s track record, click here)
Only one other analyst has recently chimed in with a LifeMD review, but his assessment is almost just as effusive. The additional Buy provides the stock with a Moderate Buy consensus rating, while the $37.50 average price target suggests 12-month upside of 323%. (See LFMD stock analysis on TipRanks)
Recent LFMD News
- LifeMD Announces Major Enhancements to its Weight Management Program, Expanding Patient Access to Branded GLP-1 Therapies and Introducing New Treatment Options • GlobeNewswire Inc. • 09/19/2024 12:00:00 PM
- LifeMD to Participate in Three Investor Conferences During September • GlobeNewswire Inc. • 08/26/2024 08:05:00 PM
- LifeMD Reports Second Quarter 2024 Results • GlobeNewswire Inc. • 08/07/2024 08:05:00 PM
- LifeMD to Report Second Quarter 2024 Financial Results on August 7 • GlobeNewswire Inc. • 07/30/2024 12:00:00 PM
- LifeMD to Participate in Two Investor Conferences During August • GlobeNewswire Inc. • 07/25/2024 12:00:00 PM
- LifeMD Declares Quarterly Dividend on Series A Cumulative Perpetual Preferred Stock • GlobeNewswire Inc. • 06/25/2024 08:05:00 PM
- LifeMD Launches Commercial Health Insurance Acceptance for its Primary Care Services, Including Weight Management • GlobeNewswire Inc. • 06/25/2024 12:00:00 PM
- LifeMD to Participate in the Truist Securities Healthcare Disruptors & Digital Health Summit • GlobeNewswire Inc. • 06/10/2024 12:00:00 PM
- LifeMD Set to Join the Russell 3000 Index • GlobeNewswire Inc. • 05/29/2024 12:00:00 PM
- LifeMD Reports First Quarter 2024 Results; Raises Full Year Revenue Guidance • GlobeNewswire Inc. • 05/08/2024 08:05:00 PM
- LifeMD Becomes the First Virtual Primary Care Provider to Elevate GLP-1 Patient Care with Real-time, At-Home Monitoring of Blood Pressure and Body Composition • GlobeNewswire Inc. • 05/02/2024 12:00:00 PM
- LifeMD Appoints Dr. Calum MacRae to its Board of Directors • GlobeNewswire Inc. • 04/29/2024 12:00:00 PM
- LifeMD to Report First Quarter 2024 Financial Results on May 8 • GlobeNewswire Inc. • 04/24/2024 12:00:00 PM
- LifeMD to Participate in Upcoming Investor and Industry Conferences During May • GlobeNewswire Inc. • 04/23/2024 12:00:00 PM
- LifeMD Declares Quarterly Dividend on Series A Cumulative Perpetual Preferred Stock • GlobeNewswire Inc. • 03/26/2024 12:00:00 PM
- LifeMD to Participate in the 23rd Annual Needham Virtual Healthcare Conference • GlobeNewswire Inc. • 03/25/2024 12:00:00 PM
- LifeMD Reports Fourth Quarter 2023 Results • GlobeNewswire Inc. • 03/11/2024 08:05:00 PM
- U.S. Index Futures Dip Ahead of Inflation Data and Oracle’s Earnings; Oil Prices Edge Higher • IH Market News • 03/11/2024 10:39:47 AM
- LifeMD to Report Fourth Quarter 2023 Financial Results on March 11 • GlobeNewswire Inc. • 02/26/2024 01:00:00 PM
- LifeMD to Participate in Upcoming Investor Conferences and Webinar • GlobeNewswire Inc. • 02/15/2024 01:00:00 PM
- LifeMD to Participate in the 11th Annual BTIG MedTech, Digital Health, Life Science & Diagnostic Tools Conference • GlobeNewswire Inc. • 01/31/2024 01:00:00 PM
- Maxim Group LLC to Host the 2024 Healthcare IT Virtual Conference on Wednesday, January 24th & Thursday, January 25th at 9:00 A.M. ET • GlobeNewswire Inc. • 01/22/2024 09:15:00 PM
- LifeMD to Participate in the Maxim Group 2024 Healthcare IT Virtual Conference • GlobeNewswire Inc. • 01/18/2024 01:00:00 PM
- LifeMD Provides 2024 Financial Guidance • GlobeNewswire Inc. • 01/08/2024 01:00:00 PM
- WeightWatchers Stock Drops 12% After Eli Lilly Launches DTC Weight-Loss Drug Service • Dow Jones News • 01/04/2024 09:30:00 PM
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