On January 8, Pooran Sharma of Stephens maintained an equal weight rating on Cal-Maine Foods, Inc. (NASDAQ:CALM). He reduced the price target from $95 to $85, indicating a potential 15% increase.
Sharma referenced the company's second-quarter earnings, which exceeded consensus estimates but were lower year-over-year. He attributed this primarily to declining egg prices after they reached multi-year highs in the spring. For the near and intermediate term, he expects ongoing concerns about egg oversupply and seasonal demand drops. Despite this, Sharma expressed confidence in the business's long-term earnings durability.
On January 7, Ben Klieve of Benchmark Co. reaffirmed a Buy rating on Cal-Maine Foods. He set a price target of $100, suggesting an upside of nearly 36%.
Klieve also based his assessment on the second-quarter results, noting that margins and earnings beat expectations. He pointed to stable pricing in the premium Specialty Egg segment, which remained resilient despite a significant drop in overall egg prices.
Cal-Maine Foods is the largest fresh shell egg producer in the United States, involved in producing, packaging, and distributing eggs and egg products. Its offerings include ready-to-eat items like protein pancakes and egg wraps, distributed through grocery stores, supermarkets, club stores, and foodservice distributors.