In a report released today, Jonna Kim from TD Cowen maintained a Buy rating on biote, with a price target of $3.50.
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Jonna Kim has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. The company has faced disruptions in its Procedure revenue, leading to a downward revision of its full-year guidance. However, management’s initiatives to improve sales force productivity and focus on sustainable growth are seen as positive steps that could lead to a turnaround.
While there are near-term headwinds, such as higher attrition and lower procedure volumes, the potential for recovery and the company’s inexpensive valuation support the Buy rating. Management’s lowered expectations for revenue and EBITDA reflect a cautious approach, but if the short-term challenges subside sooner than anticipated, there could be upside potential. The anticipated growth in Nutraceuticals revenue also provides a buffer against the decline in Procedure revenue, reinforcing the Buy recommendation.
Kim covers the Consumer Cyclical sector, focusing on stocks such as Gap Inc, American Eagle, and Victoria’s Secret. According to TipRanks, Kim has an average return of 16.7% and a 34.29% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $5.92 price target.