Noble initiates on Beachbody Company with 'buy' as beneficiary of 'GLP-1 phenomenon'

Investors should consider buying shares of micro-cap fitness and nutrition company the Beachbody Company, which has upside of almost 150%, Noble Capital Markets said in an initiation report. After several years of declining revenue, analysts believe the company is on the cusp of recovery, helped in part by the "current GLP-1 phenomenon."

Noble initiated coverage of Beachbody on Tuesday, October 28, with an “outperform” rating and a target price of $12 per share. That implies 142% upside relative to the stock’s October 30 close of $4.96 per share, when it ended the day 4% higher. In premarket trading today, October 31, the shares were down 7.3% as of this writing.

Noble’s analysts believe the business has reached an inflection point after years of contraction, with the potential for breakout growth. They noted that near current levels, the shares trade at 2.3 times EV/Noble-estimated 2026 adjusted EBITDA ($16.2 million), a substantial discount to its peer set, trading at an average of 7.2 times.

Beachbody, now rebranded as BODi, sells subscriptions for digital fitness and nutrition programs alongside its line of nutritional supplements. The company went public in 2021 through a merger with smart-bike maker Myx Fitness and a SPAC, Forest Road Acquisition Corp.

Noble sees BODi as a beneficiary of the GLP-1 trend driven by the success of Novo Nordisk’s Wegovy (semaglutide) and Eli Lilly’s Zepbound (tirzepatide). While those medications stimulate weight loss, they do not address muscle loss, nutrition, or overall wellness – gaps BODi’s fitness programs and protein-based nutrition plans are designed to fill.

The analysts also pointed to improving fundamentals. Since its IPO, Beachbody’s market value has almost completely evaporated, dropping 99%, and its revenue fell 4% in 2021 and 21% in 2022. However, management has since focused on cost reduction and operational streamlining, which are starting to bear fruit.

Over the past two years, Beachbody has focused on reducing costs and optimizing operations. For the first quarter of 2024, the company reported positive free cash flow for the first time since 2020. The management called 2024 a turnaround year. For the second quarter of 2025, Beachbody reported a significant decline in breakeven revenue, positive free cash flow, and its seventh consecutive quarter of positive adjusted EBITDA. Noble notes that the company’s strong brands and improving cost structure position it to accelerate sales growth as it expands distribution to mass retailers.

The firm also noted a solid balance sheet, with $25.6 million in cash and another $25 million in available credit as of June 30, which gives BODi financial flexibility to invest in growth.

According to MarketWatch data, three Wall Street firms currently cover Beachbody: two rate the stock a "buy," and the other a "hold." Their average target price of $9.67 per share implies roughly 95% upside from current levels.

The AI translation of this story was reviewed by a human editor.