On Monday, Goldman Sachs (NYSE:GS) has upgraded Lifestance Health Group (NASDAQ:LFST), a provider of outpatient mental health services, from Neutral to Buy, setting a price target of $10.00.
The firm's analysis suggests a positive outlook for the company's financial performance, anticipating a significant growth in EBITDA.
"We believe continued operational execution will continue in 2025+, and on an organic basis, our analysis suggests EBITDA can growth 27%+ through 2027," said Goldman analysts.
This projection is supported by the firm's confidence in the management's track record over the past two years.
Several factors contribute to Goldman Sachs' optimistic forecast for Lifestance Health. The firm mentions potential catalysts such as mergers and acquisitions (M&A), the possibility of reduced staff turnover, and favorable medium-term reimbursement rates. These elements are expected to drive the company's upward trajectory over the next 12 months.
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