UBS Sees Misunderstood Strength in Lifestance Health Group (LFST), Upgrades to Buy

UBS analyst Kevin Caliendo raised the rating of LifeStance Health Group, Inc. (NASDAQ:LFST) from Neutral to Buy on May 27, with an unchanged price target of $8.50. Caliendo ascribes the boost to investor de-risking and possible misunderstandings of recent corporate developments, which followed a period of downturn for the LFST stock.

UBS Sees Misunderstood Strength in Lifestance Health, Upgrades to Buy

Despite a cautious forecast for the second quarter, LifeStance Health Group, Inc. (NASDAQ:LFST) reported a robust first quarter, exceeding projections, with adjusted EBITDA increasing 25% to $35 million and revenue rising 11% year-over-year to $333 million.

In addition, Caliendo discussed the company’s decision to switch from stock to cash incentives, which he views as an effective strategy that could yield LifeStance Health Group, Inc. (NASDAQ:LFST) over $40 million in net income yearly for the next four years.  The analyst also brushed aside worries about the federal government’s decision to suspend the mental health parity rule.  He added that the company’s reimbursement rates and rate-improvement track shouldn’t be impacted by this suspension.

LifeStance Health Group, Inc. (NASDAQ:LFST) is an American outpatient behavioral health service company that offers in-person and telehealth services. The company offers therapy, psychiatry, and TMS.

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Read More: 10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust and 15 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.

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