In a report released yesterday, Richard Close from Canaccord Genuity maintained a Buy rating on Lifestance Health Group (LFST – Research Report), with a price target of $8.00.
Richard Close’s rating is based on several key observations about Lifestance Health Group’s recent performance and future prospects. Despite an initial market reaction that saw shares drop significantly, Close views the company’s recent financial results favorably. The revenue and adjusted EBITDA exceeded his expectations, with revenue aligning with consensus and adjusted EBITDA showing a notable upside.
Close acknowledges some concerns regarding visit growth and revenue per visit, but these were offset by better-than-expected financial metrics. He also notes the impact of a recent rate cut from a major payer, which is expected to stabilize later in the year. Additionally, Close highlights the company’s strategic shift from a stock incentive plan to a cash bonus plan for clinicians, which is anticipated to be financially beneficial. Overall, he sees the current share price dip as an opportunity to accumulate shares, reiterating his Buy rating with an $8 price target.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $10.00 price target.
LFST’s price has also changed moderately for the past six months – from $7.680 to $5.510, which is a -28.26% drop .