UPDATE: Canaccord Lowers PT on Medifast on Guidance Issues

In a report published Friday, Canaccord Genuity reiterated its Hold rating on Medifast MED, but lowered its price target from $31.00 to $27.50. Canaccord Genuity noted, “We continue to expect growth and improved profitability that should support the valuation. This year's diet season should add to the fundamental momentum...Guidance was the issue as Q1 guidance was initiated below the Street, while full year guidance was in line. Two fewer shipping days is a driver, but momentum is clearly more modest in Q1 despite a favorable advertising campaign.” Medifast closed on Thursday at $24.40.