Lifeway Foods (LWAY) has received a new Buy rating, initiated by Benchmark Co. analyst, .
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The Benchmark Company’s rating is based on several compelling factors that highlight Lifeway Foods as a promising investment opportunity. Firstly, Lifeway Foods is a leader in the kefir market, a category that has gained popularity among health-conscious consumers due to its probiotic benefits. With a dominant market share exceeding 90%, Lifeway has consistently achieved around 15% revenue growth, indicating robust demand and market presence.
Moreover, Lifeway’s financial performance has shown significant improvement, with margins expanding notably in recent years. The company’s gross and EBITDA margins have increased from approximately 23% and 7% respectively in FY20-FY22, to about 27% and 13% in FY23-FY25E. This margin expansion, coupled with disciplined operational expenditure, supports a sustainable increase in EBITDA, with a target of over $45 million by FY27. Additionally, Lifeway’s innovative product offerings, such as single-serve SKUs and functional supplements, are expanding its total addressable market and driving further growth. These factors, along with the resolution of shareholder challenges, contribute to the Buy rating with a price target of $35.
LWAY’s price has also changed slightly for the past six months – from $24.410 to $22.750, which is a -6.80% drop .