Auriga Starts Medifast (MED) at Buy; Robust Growth Should Continue with Expansion of Weight Control Centers
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Price: $11.44 -0.35%
Rating Summary:
4 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga initiates coverage on Medifast (NYSE: MED) with a Buy. PT $27.00.
Auriga analyst says, "Our expectations incorporate that Medifast will continue to see top line and earnings growth over the next few years. Foremost, the continued expansion of its coaching network as well as higher-end model weight control centers should allow the company to further penetrate the substantial commercial weight loss market. In addition, its Take Shape for Life business continues to expand, in part due to its growing coaching base."
"Medifast’s shares are trading at 9.0x our 2012 earnings estimate, which is cheap in our view considering our expectations for earnings growth of 19% in 2012 and 24% in 2013. Our $27PT assumes a 14.5x P/E multiple, which is a discount to its average since the beginning of 2010."
For more ratings news on Medifast click here and for the rating history of Medifast click here.
Shares of Medifast closed at $17.31 yesterday.
Auriga analyst says, "Our expectations incorporate that Medifast will continue to see top line and earnings growth over the next few years. Foremost, the continued expansion of its coaching network as well as higher-end model weight control centers should allow the company to further penetrate the substantial commercial weight loss market. In addition, its Take Shape for Life business continues to expand, in part due to its growing coaching base."
"Medifast’s shares are trading at 9.0x our 2012 earnings estimate, which is cheap in our view considering our expectations for earnings growth of 19% in 2012 and 24% in 2013. Our $27PT assumes a 14.5x P/E multiple, which is a discount to its average since the beginning of 2010."
For more ratings news on Medifast click here and for the rating history of Medifast click here.
Shares of Medifast closed at $17.31 yesterday.
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