On Thursday, TD Cowen maintained a Buy rating on Biote Corp. (NASDAQ:BTMD) shares and increased its price target from $7.00 to $8.00. The firm highlighted the company's resilience in the face of recent challenges, including business disruptions due to software upgrades and Hurricane Helene, which impacted the third quarter of 2024 and are expected to influence the fourth quarter as well.
Despite these challenges, the analyst from TD Cowen pointed out that the guidance downgrade was relatively modest. The firm took a positive view of Biote Corp.'s situation, noting that patient and clinic demand remained strong. Moreover, the dietary supplement segment of the company showed a significant rebound, with a 22% increase.
The analyst's outlook for Biote Corp. is also influenced by potential cost savings anticipated from the integration of Asteria Health and BioteRx, as well as the growth of the company's clinics. These factors are considered key drivers for the company's future performance.
Biote Corp., which has been navigating through operational disruptions, is observed to be on a path of recovery, as indicated by the maintained Buy rating and the raised price target. This reflects the analyst's confidence in the company's ability to overcome short-term setbacks and capitalize on its business segments and strategic integrations.
InvestingPro Insights
Biote Corp.'s recent performance and future prospects align with several key insights from InvestingPro. The company's stock has shown significant momentum, with a 29.23% price return over the past month and an 18.94% return in just the last week. This recent surge supports TD Cowen's optimistic outlook and increased price target.
InvestingPro Tips highlight that Biote is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.21. This suggests the stock may be undervalued considering its growth prospects, which aligns with the analyst's positive view on the company's potential.
Additionally, Biote's profitability is noteworthy, with a gross profit margin of 70.05% and an operating income margin of 20.35% for the last twelve months as of Q3 2024. These strong margins indicate the company's ability to maintain profitability despite the recent operational challenges mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Biote Corp., providing a deeper understanding of the company's financial health and market position.
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