Canaccord Genuity analyst Robert Burleson has maintained their bullish stance on STKL stock, giving a Buy rating yesterday.
Robert Burleson’s rating is based on SunOpta’s impressive performance in the first quarter, where they exceeded revenue and EBITDA expectations and demonstrated the potential for continued growth. The company’s top line grew by 18% year-over-year, significantly outpacing the growth rates of the categories it serves, due in part to volume increases with existing customers, expansion into new product areas like protein shakes, and the addition of new customers.
Furthermore, Burleson appreciates the strategic moves by SunOpta, such as their operational efficiency and past investments in capacity expansion, which are now yielding higher capacity utilization and enabling the company to meet surges in demand effectively. With the raised guidance for revenues and profits, along with SunOpta’s ongoing initiatives to improve operational efficiency and gross margins, Burleson sees the stock as an attractive buy with a considerable upside potential.
In another report released yesterday, Lake Street also assigned a Buy rating to the stock with a $10.00 price target.
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SunOpta (STKL) Company Description:
SunOpta, Inc. engages in the sourcing, processing, and packaging of organic and non-genetically modified food and beverage products. It operates through the following segments: Global Ingredients, Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages. The Global Ingredients segment focuses on the procurement and sale of specialty and organic grains and seeds, raw material ingredients, value-added grain and cocoa-based ingredients, and organic commodities. The Plant-Based Foods and Beverages segment offers a full line of plant-based beverages and liquid and dry ingredients, as well as broths, teas and nutritional beverages. The Fruit-Based Foods and Beverages segment offers quick frozen fruit for retail and bulk frozen fruit for food service, and custom fruit preparations for industrial use. The company was founded on November 13, 1973 and is headquartered in Mississauga, Canada.
