Mama’s Creations price target raised to $10 from $9 at Craig-Hallum

Craig-Hallum analyst Eric Des Lauriers raised the firm’s price target on Mama‘s Creations (MAMA) to $10 from $9 and keeps a Buy rating on the shares. Since taking the reins in September 2022, CEO Adam Michaels has significantly bolstered the management team, tightened controls, integrated legacy acquisitions and is now driving robust organic growth that the firm believes is underappreciated in Street estimates and stock valuation. Q2 highlighted the long-term upside that remains in the stock, with their first-ever Walmart (WMT) win and national buy from Costco (COST), expected to impact revenues starting in Q4, says Craig-Hallum. As expected, Q2 gross margins were negatively impacted by construction costs, though these headwinds will abate in Q3 and disappear in Q4, the firm argues.