Beachbody Company (BODI – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Susan Anderson from Canaccord Genuity maintained a Buy rating on the stock and has a $13.00 price target.
Susan Anderson has given her Buy rating due to a combination of factors related to Beachbody Company’s strategic shift in its business model. The company is transitioning from a multi-level marketing (MLM) model to a single-level affiliate marketing model, which is expected to significantly reduce selling-related expenses by eliminating MLM-related payouts. This change is anticipated to lower the revenue threshold needed for the company to achieve profitability, from approximately $430 million to around $225 million.
Furthermore, the upcoming fourth-quarter earnings report is expected to provide valuable insights into the company’s new operational framework. While there might be some initial gross margin pressure due to the departure of MLM sellers, the long-term outlook appears promising as the company focuses on its digital and nutrition businesses. Susan Anderson’s positive outlook is supported by the expectation of improved financial performance and a clearer path to profitability under the new business model.