Morgan Stanley sees ‘compelling entry point’ after LifeStance targeted by shorts

Morgan Stanley notes that short report yesterday called into question LifeStance’s business practices and follows other articles that have been published highlighting similar concerns. Discussions with investors highlight that this is one of the sources of high short interest in the stock, the analyst noted. While “not dismissive of the concerns that have been raised,” the firm thinks “they have been taken out of context” and views CEO Ken Burdick and CFO Dave Bourdon as “reputable and seasoned executives, serving as positive agents of operational change.” The firm, which sees “a compelling entry point” and looks for Q3 earnings due on November 8 to “provide a positive catalyst,” has an Overweight rating and $10 price target on LifeStance shares.