Lancaster Colony upgraded to Buy at Benchmark after ‘overdone’ selloff

As previously reported, Benchmark upgraded Lancaster Colony (LANC) to Buy from Hold with an $185 price target Lancaster reported fiscal Q3 results that featured a material revenue shortfall that outweighed continued margin improvement, but after the firm’s follow up conversation with management, the analyst thinks non-recurring items explained much of the topline shortfall. As a result, the firm has “comfort” in management’s fiscal Q4 expectations for 0%-(1)% revenue decline in Foodservice and 2% Retail segment revenue growth, sees continued consistent margin improvement, and feels that yesterday’s selloff in shares was “overdone,” the analyst tells investors.