Medifast (MED) PT Raised to $302 at DA Davidson

DA Davidson analyst Linda Bolton Weiser raised the price target on Medifast (NYSE: MED) to $302.00 (from $239.00) while maintaining a Buy rating.

The analyst commented, "MED reported 4Q20 sales growth of 55% and operating profit growth of 103%, beating consensus on both fronts. January top-line growth trends were similar to 4Q20, and we are raising our 2021E sales growth to 18% from 14%, partially offset by investment spending to support growth. We are raising our EPS estimates by 2% and increasing our target P/E to 25x from 20x due to the top-line momentum. We are raising our PT to $302 from $239, based on 25x 2022E EPS of $11.50 plus $14/share of balance sheet cash. We reiterate our BUY rating on this high-growth wellness company that is targeting mid-teens organic top-line growth."

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