Imperial Capital Raises Price Target on Landec (LNDC) Following 4Q15 results

Imperial Capital reiterated an Outperform rating on Landec (NASDAQ: LNDC), and raised the price target to $19.00 (from $18.00), following 4Q15 results. EPS of $0.16 was $0.03 below consensus. Revenue increased 11% to $134mn. Management guided FY EPS in a range of $0.80 to $0.83.

Analyst Mitchell Pinheiro commented, "We are maintaining our Outperform rating and raising our one-year price target to $19 from $18 on LNDC shares. Our price target is about 47% above the recent share price. LNDC’s 4Q15 results were as expected when backing out the lower-than-expected, non-cash change in the fair value of its Windset Farms investment. Strong 15% growth in the core Apio segment (ex-export) and favorable revenue mix allowed LNDC to offset the negative variances that included lower exports and higher Apio new product promotional expense. Lifecore generated 29% revenue growth and has returned to normal after the temporary order reductions in FY15. While we are lowering our FY16 estimates, the entire adjustment is based on a lower non-cash change to the fair value of Windset due to permitting delays related to its capacity expansion, an issue that has no immediate consequence or effect on the long-term growth rates and value of Windset – it is more of a distraction to the fundamentals of the core business than anything else."

For an analyst ratings summary and ratings history on Landec click here. For more ratings news on Landec click here.

Shares of Landec closed at $12.96 yesterday.

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