Goldman Sachs’ Adam Samuelson views Cal-Maine Foods Inc
Samuelson initiated coverage of the company with a Neutral rating and price target of $37.
“While we are intrigued by near-term cyclical recovery as industry supply should slow post-November, this appears fairly reflected in consensus and valuation,” the analyst mentioned.
However, Samuelson expressed caution for the medium term, given the
The analyst expressed concern regarding both Cal-Maine Foods’ and the industry’s ability to sustain premium pricing in order to mitigate the higher capital intensity and operating costs.
“This transition clouds CALM’s normalized earnings potential and we prefer to stay on the sidelines,” Samuelson stated.
In Other News
The company had reported its
More recently, Cal-Maine Foods had announced on November 2 that it had
On the other hand, Samuelson expects S/D to turn more positive into early 2017, “with egg layers poised to decline from December/January onwards, and the lagged response to negative margins for much of 2H16.”
|Nov 2016||Goldman Sachs||Initiates Coverage On||Neutral|
|Jun 2016||BB&T Capital||Upgrades||Underweight||Hold|
|May 2016||DA Davidson||Downgrades||Neutral||Underperform|
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