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DA Davidson reiterates Buy on Lakeland Industries amid overreaction to Q1 miss

DA Davidson is maintaining a Buy rating and a price target of $23 on Lakeland Industries (LAKE) following Q1 earnings. The firm notes Q1 EBITDA was short of expectations, with much of it coming from accounting-related issues that will reverse themselves within FY26; full-year guidance was not changed. Delayed orders and elevated SG&A costs rounded out the miss. Net-net, while DA Davidson is reducing FY26 EBITDA slightly, it argues that it is nowhere near the 20% decline the stock has seen to start the day. After talking with management about the above Q1 issues, the firm would be a buyer on Tuesday’s decline.

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