Medifast (MED) Management Meeting Takeaways, Jefferies Raises Estimates

Jefferies analyst Stephanie Wissink reiterated a Buy rating and $345.00 price target on Medifast (NYSE: MED) after hosting management for a virtual meeting that yielded 4 key takeaways:
1) bullish tone on both NT 60% + growth and LT 15% algo
2) conviction in demand and momentum remains high
3) spend on inventory backstock supports growth
4) tech and capacity upgrades yielding efficiency gains

The analyst stated "We raise sales estimates to reflect conviction in sustained DD% growth, backed by bullish commentary and persistently strong social data with a high degree of rev correlation. We raise FY22 rev growth estimates +200bps to +12% Y/Y, FY23 now +10% Y/Y, up from +7% prior. We reiterate FY22 GM % expectations of 73.4%, -120bps vs. historical avg, anticipating input cost pressures, though there is good potential for offsets through price and efficiency. FY22E OM % decreases 30bps out of conservatism re: SG&A spend to support DD % growth and higher depreciation."

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 $196.46 yesterday.

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