Medifast price target lowered to $25 from $35 at Stephens

Stephens lowered the firm’s price target on Medifast to $25 from $35 and keeps an Equal Weight rating on the shares after the company delivered “mixed” Q1 results and gave Q2 guidance that was “well-below expectations.” While the firm had thought initial April credit card data pointed to improving trends, it appears that was due to a promotion, which has since ended, says the analyst. The firm’s target is underpinned by the assumption that Medifast’s sales trend improves meaningfully in the second half, but if sales do not recover, the firm believes there is downside to its price target, the analyst added.