UPDATE: Imperial Capital Initiates Coverage on LifeVantage Corporation with In-Line Rating, $2.10 PT Awaiting Renewed Distributor Growth

In a report published Wednesday, Imperial Capital analyst Mitchell B. Pinheiro initiated coverage on LifeVantage Corporation LFVN with an In-Line rating and $2.10 price target. In the report, Imperial Capital noted, “We are initiating coverage of LifeVantage Corporation (LFVN) with an In-Line rating and one-year price target of $2.10. Our price target is about 40% above the recent share price. LFVN's business has experienced rapid revenue growth since FY09 as the company transitioned from retail store distribution to a network marketing (multi-level marketing) model for its anti-aging nutraceutical product, Protandim. Our In-Line rating reflects some near-term caution for two reasons: 1) revenue growth has declined in the last two quarters, in part, due to a slowdown in active distributor growth and a weakening Japanese yen, 2) near-term visibility is clouded as the company has lost near-term distributor momentum which we believe is critical in a multi-level marketing model. LFVN's recent additions to management and initiatives to revive distributor and active customer growth look positive; however, we prefer to have more visibility before committing to these shares, which currently trade consistent with its multi-level marketing peers.” LifeVantage Corporation closed on Tuesday at $1.47.