DA Davidson analyst Linda Bolton Weiser lowered the firm’s price target on Medifast to $25 from $40 and keeps a Neutral rating on the shares. The company reported a small Q1 sales beat but profit missed consensus by 11% due to higher spending behind the new GLP-1 drug offering, the analyst tells investors in a research note. The firm cut estimates after the Q2 outlook came in below estimates. While Medifast’s new clients may be up sequentially in Q3, Coaches will not, and the company books monthly sales per drug customer of only $217 versus $400 for the original 5-and-1 plan, notes DA Davidson.
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