Medifast (NYSE:MED) Acceleration to Pick Up

Medifast (NYSE:MED) seems to have only just begun a multi-channel expansion which should propel them strongly into the future, according to Canaccord Genuity.

"We reiterate our thesis that Medifast is in the early stages of a multi-channel expansion phase with an attractive business model that should generate strong earnings and cash flow growth on top of well above average returns on equity and capital...Raising F2011E revenue to $332M from $328M to reflect clinic growth, offset by higher initial costs to keep EPS unchanged," said Canaccord.

They maintain a "Buy" rating on Medifast, which closed Friday at $27.45, surging $1.10, or 4.17 percent. Canaccord has a price target on them of $40.