Medifast price target lowered to $71 from $94 at DA Davidson

DA Davidson analyst Linda Weiser lowered the firm’s price target on Medifast to $71 from $94 and keeps a Neutral rating on the shares. The company’s Q1 results were a beat, but Q2 guidance was "way below" estimates, with profitability looking impacted by another program to incentivize Coaches to recruit new clients, the analyst tells investors in a research note. While Medifasthas put new initiatives in place internally to get back to 15% top-line growth and a 15% operating margin by 2025, the company is still figuring out how to respond to growing weight loss drug use, the firm added.