Analysts Are Betting On LifeMD, Inc. (NASDAQ:LFMD) With A Big Upgrade This Week

LifeMD, Inc. (NASDAQ:LFMD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on LifeMD too, with the stock up 21% to US$2.44 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After this upgrade, LifeMD's twin analysts are now forecasting revenues of US$164m in 2023. This would be a sizeable 39% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 77% to US$0.41. However, before this estimates update, the consensus had been expecting revenues of US$143m and US$0.43 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

Check out the opportunities and risks within the US Personal Products industry.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that LifeMD's revenue growth is expected to slow, with the forecast 30% annualised growth rate until the end of 2023 being well below the historical 62% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.4% per year. So it's pretty clear that, while LifeMD's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around LifeMD's prospects. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at LifeMD.

Better yet, LifeMD is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.