In a report released yesterday, Kevin Caliendo from UBS upgraded Lifestance Health Group (LFST – Research Report) to a Buy, with a price target of $8.50.
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Kevin Caliendo has given his Buy rating due to a combination of factors that highlight Lifestance Health Group’s strong positioning and growth potential. He identifies a disconnect between the company’s current valuation and its underlying performance, which he attributes to investor caution and misinterpretations of recent developments. Despite a conservative guidance for the upcoming quarters, Caliendo views the shift from stock-based to cash-based incentives as a positive move that will save the company significant costs in the long term.
Furthermore, Lifestance Health Group has shown consistent growth in its clinician recruitment, which enhances its financial profile and positions it for future expansion. The company operates in a large, underpenetrated market, which presents substantial opportunities for growth. Despite recent market sell-offs, Caliendo believes that the company’s long-term growth prospects remain strong, supported by favorable market trends and a capable management team. This, combined with a compelling risk-reward profile, justifies the Buy rating with a price target of $8.50.
Caliendo covers the Healthcare sector, focusing on stocks such as DENTSPLY SIRONA, Envista Holdings, and Alignment Healthcare. According to TipRanks, Caliendo has an average return of 4.5% and a 56.68% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $10.00 price target.