After Craig-Hallum and Cantor Fitzgerald gave Tivity Health Inc (NASDAQ: TVTY) a Buy rating last month, the company received another Buy, this time from Barrington. Analyst Michael Petusky maintained a Buy rating on Tivity Health Inc today and set a price target of $40. The company’s shares opened today at $20.25, close to its 52-week low of $16.25.
Petusky noted:
“We continue to rate Tivity Health an OUTPERFORM and our price target remains $40. We arrive at our target by attaching a 12x multiple to our FY/19 adjusted EBITDA estimate. We assume roughly $1 billion in net debt 12 months from now. Final thought: it is obvious that massive skepticism exists around this business combination. We get that, and share it to some extent (particularly in terms of the pacing and materiality of reimbursement for food by payors). That said, we believe that historical TVTY can grow mid-single digits and that the NTRI business will return to low- mid-single-digit growth over time (not exactly wild-eyed optimism). In short, these businesses generate a lot of cash and the stock is simply too cheap at 8.2x EV/FY19 EBITDA. Risk/reward strongly favors investment at current levels. Health, Inc.”
According to TipRanks.com, Petusky is a 3-star analyst with an average return of 2.4% and a 50.0% success rate. Petusky covers the Healthcare sector, focusing on stocks such as Anika Therapeutics Inc, Varian Medical Systems, and Merit Medical Systems.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Tivity Health Inc with a $35.14 average price target, implying a 73.5% upside from current levels. In a report issued on April 25, Oppenheimer also assigned a Buy rating to the stock with a $31 price target.
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Based on Tivity Health Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $4.21 million. In comparison, last year the company had a net profit of $21.34 million.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TVTY in relation to earlier this year.
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Tivity Health, Inc. engages in the development and provision of network solutions and health management services. It offers rehabilitative therapy, chiropractic procedure, alternative medicines, and health and fitness programs under the SilverSneakers, Prime Fitness, and WholeHealth Living trademarks.
