Medifast (MED) Defended at DA Davidson

DA Davidson analyst Linda Bolton Weiser reiterated a Buy rating and $249 price target on Medifast (NYSE: MED) telling clients to buy on today's pull-back.

Weiser commented, "MED reported 3Q18 sales of $139M, above consensus of $125M and guidance of $120M-$125M. Revenue growth accelerated to 80% from 55% in 2Q18, making 3Q18 the sixth consecutive quarter of growth acceleration. EPS of $1.14 exceeded guidance of $1.05-$1.10 and was in line with consensus, but missed our estimate by $0.01. Operating margin was -70bp despite the robust revenue growth because the upside was reinvested. SG&A leverage (ex. A&P and sales commission) was only 140bp compared with ~300bp-400bp in 1H18. Sales guidance for 4Q18 exceeded consensus, and EPS guidance of $1.15-$1.20 bracketed consensus of $1.16 and our estimate of $1.18. The lack of EPS upside vs. consensus likely spooked momentum investors, and the stock was -19% after hours."

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 $214.88 yesterday.

You May Also Be Interested In

• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform
• Opthea Ltd. (OPT) PT Raised to $18 at Oppenheimer
• Align Technology (ALGN) PT Raised to $375 at Piper Sandler