Craig-Hallum bullish onLifeMD, initiates with a Buy

As previously reported, Craig-Hallum analyst Alex Fuhrman initiated coverage of LifeMD with a Buy rating and $10 price target. The firm says that LifeMD’s core telehealth business is inflecting to profitability just as the GLP-1 boom is causing growth to accelerate. The stock has performed well this year but is still down more than 75% from its 2021 peak, and Craig-Halum believes investors are underestimating the transformative nature of the new weight loss offering. Only three analysts cover the stock and the firm believes consensus EBITDA estimates for 2024 and 2025 are too low. Craig-Hallum thinks there is significant potential for the stock to rerate higher as more institutions discover LifeMD and as out-year estimates rise over time.