William Blair analyst Jon Andersen has reiterated their bullish stance on STKL stock, giving a Buy rating on February 24.
Jon Andersen has given his Buy rating due to a combination of factors that highlight SunOpta’s strong performance and promising outlook. The company has achieved impressive volume growth of 21% for the year 2024, setting the stage for continued robust growth in 2025. This growth is supported by strategic investments in manufacturing and productivity enhancements, which are expected to significantly improve gross and EBITDA margins as the year progresses.
Additionally, SunOpta’s shift from capital-driven growth to a focus on operational efficiency is anticipated to generate free cash flow, aiding in debt reduction and enhancing returns on capital. The management’s guidance for 2025, although conservative, aligns with their long-term goal of reaching an EBITDA run-rate of approximately $125 million by the end of the year. This combination of sales growth, margin improvement, and capital efficiency positions SunOpta favorably within the competitive food industry landscape, justifying the Buy rating.