Getting Started with LifeStance Health Group, Inc.

William Blair launched the research coverage of LifeStance Health Group, Inc. (LFST $ 27.63), the largest provider of outpatient mental health services in the United States.

Analyst Ryan daniels estimated that the company would generate total revenues of $ 664.4 million in 2021, $ 922.8 million in 2022 and $ 1,214.1 million in 2023.

“LifeStance occupies a leading position in the mental health services market,” Daniels said, “focusing on outpatient services both in-clinic and virtually. We believe the organization has quickly established itself as a industry leader, with a huge total addressable market opportunity of approximately $ 115 billion, at present. In addition, given the increased care needs and increased use of outpatient services, we expect that the TAM will expand to over $ 215 billion by the end of 2025. In our view, LifeStance offers a strong and compelling value proposition for all of its key constituents: patients, payers and providers, to both referring general practitioners and employed clinicians. ”

Daniels continued, “LifeStance’s unique approach to market entry begins with acquiring anchor practices in attractive metropolitan statistical areas. These anchor groups have typically established the scale and coverage needed to become networked providers for private insurers, which allows LifeStance to open clinics de novo, expand existing centers, and consolidate providers. smaller under existing managed care contracts, thereby expanding access to care. for people who otherwise couldn’t afford it. This creates a virtuous cycle of growth as superior operational and clinical performance attracts new patients, payers and providers; stimulates growth and economies of scale; enables innovation and reinvestment in growth; and enhances LifeStance’s ability to further execute its unified care delivery model.

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William Blair or an affiliate expects to receive or intends to seek compensation for investment banking services from LifeStance Health Group, Inc. or an affiliate within the next three months.

William Blair or an affiliate has received compensation for investment banking or non-investment banking services from LifeStance Health Group, Inc. in the past 12 months. LifeStance Health Group, Inc. is or was, within the past 12 months, an investment banking client of William Blair and / or one or more of its affiliates.

Officers and employees of William Blair or its affiliates (other than research analysts) may have a financial interest in securities of LifeStance Health Group, Inc.

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Breakdown of current scores (as of 5/7/21)

Coverage universe
Outperform (Buy): 76%
Market performance (hold): 23%
Underperform (Sell): 1%

Inv. Banking relations *
Outperform (Buy): 28%
Market performance (hold): 11%
Underperform (Sell): 0%

* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair received compensation for investment banking services in the past 12 months.

The compensation of the research analyst is based on a variety of factors, including the quality and accuracy of the research, customer feedback, contributions to other departments in the company, competitive factors and the profitability of the company.

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