TD Cowen analyst Jonna Kim maintained a Buy rating on biote (BTMD – Research Report) today and set a price target of $4.00.
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Jonna Kim has given his Buy rating due to a combination of factors that suggest potential for future growth despite some current challenges. The company’s valuation is considered attractive at approximately 1x FY2 EV/Sales, and there is optimism about the supplements business, which has shown significant growth, particularly with the move to Amazon. This growth is expected to continue into the second quarter, although there may be tougher comparisons in the latter half of FY25.
Moreover, the management is taking proactive steps to address challenges in clinic growth by restructuring the organization to enhance sales productivity and efficiency. This includes realigning the commercial organization, increasing the number of active sales representatives, and improving sales leadership. While there are some temporary issues such as software rollout disruptions and slight attrition in existing clinics, these are expected to stabilize. Overall, the strategic initiatives and the potential for growth in new clinic additions support the Buy rating, even as the price target is adjusted to $4.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $6.00 price target.