Medifast initiated with "buy"

01/21/07 - eResearch

NEW YORK, January 22 (newratings.com) - Analyst Laura Richardson of eResearch initiates coverage of Medifast Inc (MED) with a "buy" rating. The 12-month target price is set to $16.

In a research note published on January 19, the analyst mentions that the company is well positioned to benefit going forward from weight-related concerns and is poised to capitalize on this trend through an increase in its ad spending. Medifast faces an opportunity to generate over $700 million in revenues in the forthcoming five-to-ten years, the analyst says. The company is expected to achieve 38% and 30% earnings growth this year and in the long-term, respectively, eResearch adds.