Thursday, August 24, 2023
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Raising Price Target. With the shares exceeding our $10 price target, we are raising our target to $12. Our new target is 1.1x our 2023 revenue estimate, up from a prior 1.0x, and still well below the specialty foods peer group average of 2.3x. While we were impressed with the second quarter results, rising milk prices and the potential of consumers trading down in a recessionary environment continue to make us take a more conservative approach to valuation.
Shares Up Solidly YTD. On the heels of record quarterly results, LWAY shares appreciated over 60% since August 11th and are now up 77.8% YTD, compared to a 6.2% YTD rise in the Russell 2000. The last time LWAY shares breached the $10 level was back in 2017.
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