On Tuesday, Lake Street Capital Markets initiated coverage on LifeMD Inc (NASDAQ: LFMD), assigning a Buy rating and establishing a price target of $12.00.
LifeMD, recognized as a leading provider in the virtual primary care space, offers telemedicine services and access to laboratory and pharmacy services. The company covers an extensive range of treatments, including primary care, men’s and women’s health, weight management, and hormone therapy.
The company has been actively expanding its capabilities and infrastructure. Recently, LifeMD opened a new 22,000 square foot pharmacy and has been broadening commercial insurance coverage for its patients. Expectations are set for Medicare coverage to become available in 2025. Additionally, LifeMD has expanded its RexMD men’s health offering to include hormone therapy.
"LifeMD is committed to becoming the leading provider of virtual healthcare across a range of categories and capabilities. We believe the Company™s platform is both timely and scalable," said analysts at Lake Street Capital.
In the third quarter, the company reported a 38% increase in revenue, reaching $53.4 million. Gross margin improved significantly to 90.6%, up from 87.6% in the previous year. The number of active telehealth subscribers also saw a substantial rise, growing 30% to approximately 269,000.
The company's weight management offering, which includes GLP-1 medications, is particularly noteworthy for its vast market potential. Lake Street Capital Markets sees this as a key driver for LifeMD's future growth. The firm anticipates continued rapid growth, increasing margins, and a clear path to profitability for LifeMD, projected for 2025 or 2026.
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