Cal-Maine Foods (CALM) PT Lowered to $70 at Stephens

Stephens analyst Pooran Sharma lowered the price target on Cal-Maine Foods (NASDAQ: CALM) to $70.00 (from $80.00) while maintaining a Equal Weight rating.

The analyst commented: "CALM reported 1Q27 adj. EPS of ($1.23), vs. our/consensus estimates of ($0.64)/($0.77). The EPS miss vs. our estimate was largely driven by lower gross margin, higher SG&A, and lower other income. Pricing was expected to be soft across the shell egg business given the oversupplied market, but results were further pressured by a larger than-anticipated step-up in corporate expense. That said, management pointed to a handful of production indicators that imply that the industry is beginning to rationalize supply, (lower hatch rates and an increase in order cancellations). In terms of the set-up from here, while valuation is seemingly at attractive levels, we continue to believe the industry remains in the early stages of its recovery, and we would prefer to see additional evidence of sustained supply rationalization before becoming more constructive on the name. We are maintaining our EW(Vol.) rating, but lowering our price target to $70 ($80 prior)."

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