Cantor Fitzgerald initiated coverage of LifeMD (NASDAQ:LFMD) with an “overweight” rating and price target of $7. The stock closed at $3.53 on July 20.
“We see LifeMD as an undervalued, below-the-radar growth story in the virtual primary-care sector that will meet the hurdle of estimated EBITDA positivity in 2023 and have several growth levers to drive further upside,” writes analyst Sarah James.
Ms. James said the company could grow the top-line in the 20% to 30% compound annual growth rate range over the next three-to-five years, moving towards long-term EBITDA margins of 25% to 30%.
LifeMD has several levers that could materially drive growth, and solid control over the mix of growth vs. profit in each of its segments via ad spend and patient acquisition caps, Ms. James pointed out.
“We believe at this point in the cycle, the market values profitability and cash flow generation, and we see LifeMD’s strategy as well-aligned with this,” she added.
