Jefferies analyst Robert Dickerson reiterated a Hold rating on Lancaster Colony (LANC – Research Report) today and set a price target of $200.00.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding Lancaster Colony Corp’s performance and outlook. The company’s second-quarter sales came in slightly under expectations, but a notable positive was the margin benefits driven by PNOC, which helped support the stock. Lancaster’s partnership with Chick-fil-A has been performing well in the retail segment, and the addition of new Subway branded sauces could signify future growth. However, there are anticipated volume declines in the second half from other brands, which tempers the outlook.
Moreover, while Lancaster Colony is expected to see growth in its Foodservice segment, thanks to increased bottling capacity, this is somewhat counterbalanced by the need to pass through some cost deflation to customers. There’s also a concern regarding the necessity for retail reinvestment. Despite these potential growth drivers, there are limited expectations for multiple expansions moving forward, leading to the reiteration of a Hold rating on the stock by Robert Dickerson at Jefferies.
According to TipRanks, Dickerson is a 4-star analyst with an average return of 3.5% and a 61.61% success rate. Dickerson covers the Consumer Defensive sector, focusing on stocks such as UTZ Brands, General Mills, and Kellanova.
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Lancaster Colony (LANC) Company Description:
Lancaster Colony Corp. engages in the manufacture and marketing of specialty food products. It operates through Retail and Foodservices segments. The Retail and Foodservices segments focuses in the manufacture and selling of frozen breads; refrigerated dressings and dips; and shelf-stable dressings and croutons under the brand name New York BRAND Bakery, Sister Schubert’s, Marzetti Frozen Pasta, and Flatout. The company was founded in 1961 and is headquartered in Westerville, OH.
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