UBS Reiterates Buy Rating on Lifestance Health Group (LFST)

UBS analyst Kevin Caliendo reiterated a Buy rating and $9.00 price target on Lifestance Health Group (NASDAQ: LFST).

The analyst commented, "Healthcare Technology and Distribution: Our top pick is LifeStance Health Inc (LFST), with 68% implied upside potential. We maintain our positive outlook on LFST, highlighting a disconnect between its performance and valuation. Key drivers include: (1) a revamped management team with a clear path to medium-term targets, including DD adj. EBITDA growth and margin expansion; (2) a proven clinician recruiting engine delivering consistent 10%+ annual growth, enhancing ROI; (3) additional growth opportunities supported by a strong FCF profile (~4% 2026e FCF yield) and a solid balance sheet ($189M cash, $273M debt); and (4) operations in a large, underpenetrated market, with 2025 revenue estimated at ~1.2% of the $116B TAM. We believe expectations are overly conservative, with downside risks, such as payer rate pressures, likely priced into YTD stock performance. At a $6 stock price and 21x multiple, the market appears to price ~$105M in NTM adj. EBITDA, more than 33% below our estimate."

For an analyst ratings summary and ratings history on Lifestance Health Group click here. For more ratings news on Lifestance Health Group click here.

Shares of Lifestance Health Group closed at $5.38 yesterday.

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