LifeMD Inc (LFMD) PT Lowered to $12 at KeyBanc

(Updated - August 6, 2025 1:20 PM EDT)

KeyBanc analyst Steve Dechert lowered the price target on LifeMD Inc (NASDAQ: LFMD) to $12.00 (from $14.00) while maintaining an Overweight rating.

The analyst commented: "2Q Miss on Elevated RexMD CAC, but Diversification of Business Expected to Alleviate Revenue Segment Concentration; LFMD reported a top- and bottom-line miss mainly on elevated CAC during 2Q (up 5-25% sequentially) within its RexMD business (men's ED/hair loss & 40-50% of telehealth revs), which in turn drove down sales volumes. As a countermeasure, LFMD is diversifying its RexMD business to give it more places to allocate capital should the Company see another disruption. LFMD also noted that CAC levels are nearing where they were in 4Q24/1Q25 through some proactive actions taken by the Company, and its sales-per-day have improved greatly since the middle of 2Q. Additionally, LFMD commented that it admittedly took its eye off the ball in managing RexMD CAC as the Company was undergoing an enormous transition during 2Q with its weight management (compounded GLP-1s to branded). LFMD also experienced minor headwinds from higher refund rates within its weight management business. We believe these refunds are tied to patients who are still looking to pay cash prices of around $200 per month if they can't get insurance coverage as even with the discounted ELY & NOVO programs, customers are often faced with a $500 per month price for a branded GLP-1s. However, LFMD is currently working to enhance its real-time benefit verification, which should help to reduce its refund rate. Despite these headwinds, we expect RexMD to return to double-digit growth over the course of 2H25 by scaling its HRT, peptide, prescription weight management, and personalized ED and hair loss treatment programs. We also expect to see growth from the Company's recently launched behavioral health offering and from its women's health programs, which is expected to launch at the end of 3Q. Not only do we expect these two new endeavors to contribute to revenue growth in FY26, but we also expect them to reduce the Company's business segment concentration as RexMD and weight management comprise the majority of LFMD's telehealth revenues. We are lowering our PT to $12 on our reduced telehealth estimates. Our new PT is predicated on a ~2x multiple of our FY26 revenue estimate."

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