aluxum Medifast ( NYSE: MED ) is down ~15% in pre-market trading Wednesday after DA Davidson cut the stock from neutral to underperform on concerns about Q3 guidance and needing to boost its advertising budget regarding GLP-1 drugs. The firm cut its price target to $17.50 from $25 (~27% downside based on June 4).
Analyst Linda Bolton Weiser said that the company may have to boost its marketing budget to compete with telehealth and other providers offering GLP-1 meds for weight loss. She added that GLP-1 ads are now slated to begin running in July, as opposed to her expectation of June. And while Q3 guidance isn't expected until August, she expects those numbers to be a disappointment.
More on Medifast Medifast: Significant Undervaluation Even As Struggles Persist Medifast Non-GAAP EPS of $0.66 misses by $0.12, revenue of $174.
74M beats by $5.84M Medifast Q1 2024 Earnings Preview Medifast, Inc. (MED) Q1 2024 Earnings Call Transcript Medifast, Inc.
2024 Q1 - Results - Earnings Call Presentation.
