Cal-Maine Foods (CALM) has received a new Hold rating, initiated by Goldman Sachs analyst, Leah Jordan.
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Leah Jordan’s rating is based on several factors influencing Cal-Maine Foods’ current market position. The company has recently benefited from higher egg prices due to a constrained supply, largely driven by disease impacts such as the bird flu. However, as the egg supply is expected to recover with an improving flock, the fundamentals are anticipated to normalize over the next year.
Cal-Maine Foods’ profitability has been closely tied to egg prices, and while the company is shifting towards more value-added products, margin variability is expected to stabilize. The current market conditions and the company’s recent stock performance have led to a full valuation, suggesting a balanced risk/reward scenario. Consequently, Leah Jordan believes that a Hold rating is appropriate, reflecting the view that the stock’s potential upside is limited in the near term.
According to TipRanks, Jordan is a 4-star analyst with an average return of 22.6% and a 60.00% success rate. Jordan covers the Consumer Defensive sector, focusing on stocks such as Tyson Foods, Conagra Brands, and General Mills.