In a report released on March 14, Ben Klieve from Lake Street reiterated a Buy rating on Lifeway Foods (LWAY – Research Report), with a price target of $28.00.
Ben Klieve has given his Buy rating due to a combination of factors that highlight Lifeway Foods’ potential for continued growth. Despite a slight miss in Q4’24 revenue estimates, the company demonstrated strong performance with its flagship kefir product, showing a 14% growth. This indicates a robust consumer interest in Lifeway’s offerings, particularly in the functional foods category, which is gaining traction among health-conscious consumers.
Additionally, the company’s strategic investments and market positioning are expected to yield positive outcomes. Lifeway’s equity stake in Simple Mills, which was acquired by Flowers Foods, is projected to bring a significant profit in Q1. Furthermore, with milk prices stabilizing, Lifeway is poised for gross margin expansion, which, coupled with anticipated revenue growth, is likely to enhance EBITDA. These factors collectively contribute to a favorable outlook for Lifeway Foods, justifying the Buy rating and the price target of $28.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LWAY in relation to earlier this year.