aluxum
- Medifast (NYSE:MED) is down ~15% in pre-market trading Wednesday after DA Davidson cut the stock from neutral to underperform on concerns about Q3 guidance and needing to boost its advertising budget regarding GLP-1 drugs.
- The firm cut its price target to $17.50 from $25 (~27% downside based on June 4).
- Analyst Linda Bolton Weiser said that the company may have to boost its marketing budget to compete with telehealth and other providers offering GLP-1 meds for weight loss. She added that GLP-1 ads are now slated to begin running in July, as opposed to her expectation of June.
- And while Q3 guidance isn't expected until August, she expects those numbers to be a disappointment.