Craig-Hallum bullish on Farmer Bros., initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Farmer Bros. with a Buy rating and $6 price target. The firm notes Farmer Bros. is a 112-year-old coffee company that recently divested its low-margin B2C business and is refocusing on its core Direct Store Delivery business. Its new management team, optimized facility footprint and upgraded technology have already helped improve profitability and are expected to drive positive free cash flow in the first half of 2025, Craig-Hallum argues, adding it thinks will drive significant EBITDA growth in the coming quarters and years.