FitLife Brands Poised For Strong Revenue Growth, Cost Savings: Analyst

FitLife Brands Inc FTLF stock is trading at $33.31 per share, up 0.18% at the last check Tuesday morning.

The company’s shares climbed around 70% year to date.

The Omaha, Nebraska-based company will likely generate double-digit revenue growth, according to Roth Capital Partners.

Analyst Sean McGowan initiated coverage of FitLife Brands with a Buy rating and a price target of $40.

The FitLife Brands Thesis: M&A will likely to continue playing an important part in the company's growth strategy, McGowan said.

Check out other analyst stock ratings.

FitLife’s "Legacy" brands, those that have been part of the company prior to 2023, recorded a CAGR (compounded annual growth rate) in revenues of approximately 10% from 2018 to 2023, "despite the strategic decision to reduce revenue in brick and mortar stores in favor of on-line sales, which resulted in Legacy revenues declining modestly in 2023," the analyst wrote. "During this period, acquisitions boosted total revenue growth to a CAGR of 25%," he added.

The company has been acquiring "synergistic brands that are complementary to revenue and margins," the analyst said. "Since FitLife’s brands are all essentially within the same industry (wellness), there is room for further synergies in such operating costs as advertising, marketing and G&A as the portfolio broadens," McGowan further wrote.

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