SunOpta’s Strong Performance and Growth Potential: A Buy Recommendation by John Baumgartner

Mizuho Securities analyst John Baumgartner has maintained their bullish stance on STKL stock, giving a Buy rating today.

John Baumgartner has given his Buy rating due to a combination of factors that highlight SunOpta’s strong performance and growth potential. The company closed FY24 with slight beats in both revenue and EBITDA, demonstrating a solid financial performance. Despite a lighter gross margin, the leverage in operating expenses aligns with Baumgartner’s thesis, indicating a strong operational foundation.
Furthermore, SunOpta’s guidance for FY25 suggests potential for a ‘beat and raise’ scenario, with revenue projections bracketing Street estimates and EBITDA guidance providing room for incremental growth investments. The company’s sustained volume growth, coupled with productivity and leverage benefits, underscores its value creation potential. Additionally, the outlook for accelerating free cash flow further supports the Buy rating, as it indicates robust financial health and future growth prospects.

STKL’s price has also changed moderately for the past six months – from $6.210 to $7.390, which is a 19.00% increase.