UPDATE: Wedbush Securities Raises PT to $37 on Medifast on Growth Plan

Wedbush Securities reiterated its Outperform rating on Medifast (NYSE: MED) and raised its price target from $34 to $37.

Wedbush Securities commented, "To achieve its $1 billion target, which represents a compound annual growth rate of 23%, management targets doubling domestic sales and growing international sales to $150 million. … Given Medifast's solid revenue growth, strong cash flow generation, and improving financial outlook, we believe shares of MED should trade at an EV/ 2013E EBITDA multiple of 9x, a 10% premium to the peer group average, generating our $37 PT."

Medifast closed at $21.25 on Tuesday.

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