TD Cowen analyst Jonna Kim maintained a Buy rating on biote (BTMD – Research Report) yesterday and set a price target of $6.00.
Jonna Kim has given his Buy rating due to a combination of factors that highlight both the potential and challenges faced by BTMD. The introduction of a new CEO is expected to bring a sharper focus on improving operational efficiency within existing clinics and expanding the clinic network. Despite a challenging macroeconomic environment, the company enjoys a loyal customer base, which supports its value proposition and product efficacy. However, the stock’s valuation remains attractive, albeit potentially range-bound until there is a clear acceleration in revenue growth.
BTMD’s recent software transition has posed some challenges, particularly in onboarding existing clients and impacting new clinic growth. The management is actively addressing these issues by investing in sales and marketing efforts to boost clinic acquisitions, although improvements may take a few quarters to materialize. While the near-term outlook is tempered by these headwinds, with modest growth expectations for procedure and dietary supplement revenues, the long-term potential of BTMD’s proprietary clinical decision support software and its personalized therapy offerings provide a solid foundation for future growth.
In another report released on March 14, Jefferies also maintained a Buy rating on the stock with a $6.80 price target.