Limoneira upgraded to Buy from Hold at Lake Street

Lake Street analyst Ben Klieve upgraded Limoneira (LMNR) to Buy from Hold with an unchanged price target of $23. Q2 results came in “modestly below” the firm’s estimates behind an especially weak lemon market, but the highlight was a major agreement to merge a portion of Limoneira’s operations into Sunkist, which will “meaningfully” reduce Limoneira’s fixed costs and operating expenses while improving the revenue mix to higher margin businesses, the analyst tells investors. Shares being indicated down pre-market is due to “the market navel gazing at Q2’25 results and not the significantly improved outlook,” the analyst contends.