Auriga Reiterates a 'Buy' on Medifast (MED); Management Change Shouldn't Alter 2012 Plans
MED Hot Sheet
Rating Summary:5 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Auriga reiterates a 'Buy' on Medifast (NYSE: MED) price target of $26.00.
Auriga analyst says, "While we believe Mr. McDevitt's contract expiration and the desire to keep control within the MacDonald family are likely the driving factors in the change, the appointment was nevertheless a surprise to us. Mr. McDevitt recently appeared at the ICR conference last month and we appreciated the high energy level he brought to the CEO role at Medifast. Given the sudden news, and short transition period, investor caution may increase, especially considering the recent volatility we've seen in several of its commercial weight loss peers. Nevertheless, we do not believe that the announcement should alter Medifast's 2012 plans, which includes continued expansion within its Weight Control Centers and reestablishing coach growth within its Take Shape for Life segment. We expect Mr. MacDonald to discuss the transition during the company's fourth quarter conference call, which should occur in March. In the meantime, we are reiterating our recommendation and our $26 price target. If shares weaken on the news, we suggest viewing it as a buying opportunity."
For an analyst ratings summary and ratings history on Medifast click here. For more ratings news on Medifast click here.
Shares of Medifast closed at $16.10 yesterday, with a 52 week range of $12.97-$27.82.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
Auriga analyst says, "While we believe Mr. McDevitt's contract expiration and the desire to keep control within the MacDonald family are likely the driving factors in the change, the appointment was nevertheless a surprise to us. Mr. McDevitt recently appeared at the ICR conference last month and we appreciated the high energy level he brought to the CEO role at Medifast. Given the sudden news, and short transition period, investor caution may increase, especially considering the recent volatility we've seen in several of its commercial weight loss peers. Nevertheless, we do not believe that the announcement should alter Medifast's 2012 plans, which includes continued expansion within its Weight Control Centers and reestablishing coach growth within its Take Shape for Life segment. We expect Mr. MacDonald to discuss the transition during the company's fourth quarter conference call, which should occur in March. In the meantime, we are reiterating our recommendation and our $26 price target. If shares weaken on the news, we suggest viewing it as a buying opportunity."
For an analyst ratings summary and ratings history on Medifast click here. For more ratings news on Medifast click here.
Shares of Medifast closed at $16.10 yesterday, with a 52 week range of $12.97-$27.82.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- Barclays Maintains an 'Overweight' on Tidewater (TDW); Dayrates Climb, But Adjusting Numbers Lower on Expenses
- Goldman Sachs Defends J.P. Morgan (JPM); 'Down But Not Out'
- Brean Murray Carret & Co. Reiterates a 'Sell' on Urban Outfitters (URBN); Still No Reason For Optimism
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
AurigaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
