Biote Corp (BTMD) Stock Forecast & Price Target

Biote Corp is positioned for strong financial growth as it continues to transition its pellet production to Asteria, which is projected to enhance gross profit margins by up to five percentage points as production scales. The management's detailed guidance for FY24 indicates expected revenue between $200 million to $204 million and an EBITDA of $60 million to $63 million, fueled by a rebound in supplement revenue and accelerated procedural growth driven by clinic maturation and new offerings. Additionally, the anticipated internalization of pellet manufacturing is expected to contribute approximately 200 basis points or more to the overall gross margin, highlighting the company's strategic focus on improving profitability and operational efficiency.

Biote Corp's financial performance has shown a concerning trend, particularly highlighted by a 14.6% decline in supplement revenue stemming from the unexpected exit of a major distribution partner and a sequential decrease in procedure revenue growth from 7.4% to 6.6%. Preliminary results for the fourth quarter indicate revenue and EBITDA expectations falling short of prior estimates, with management projecting figures that undercut previous forecasts by approximately $5 million. Additionally, the company's low institutional ownership exacerbates trading volatility, contributing to a negative outlook as the stock's valuation reflects concerns over liquidity and a recent de-SPAC transition.