Analyst John Baumgartner of Mizuho Securities reiterated a Buy rating on Nomad Foods, reducing the price target to $20.00.
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John Baumgartner has given his Buy rating due to a combination of factors influencing Nomad Foods’ outlook. Despite recent challenges such as unfavorable weather impacting sales and inflationary pressures affecting EBITDA, Baumgartner sees potential for growth driven by innovation and cost efficiency initiatives. The company’s new product launches and marketing strategies are expected to enhance its market presence and drive organic growth, particularly as these initiatives gain momentum.
Additionally, Nomad Foods is focusing on network optimization and productivity improvements, which are anticipated to support margin expansion. While the company has adjusted its financial guidance for FY25 due to current macroeconomic conditions, Baumgartner remains optimistic about the long-term prospects, expecting EBITDA acceleration by FY27. The reduction in price target reflects these near-term challenges, but the overall outlook supports a Buy rating as the company positions itself for future growth.
According to TipRanks, Baumgartner is a 4-star analyst with an average return of 9.4% and a 57.20% success rate. Baumgartner covers the Consumer Defensive sector, focusing on stocks such as The Hershey Company, Nomad Foods, and General Mills.
In another report released on August 8, Barclays also maintained a Buy rating on the stock with a $18.00 price target.