Nomad Foods Ltd (NOMD) PT Lowered to $23 at Deutsche Bank

Deutsche Bank analyst Steve Powers lowered the price target on Nomad Foods Ltd (NYSE: NOMD) to $23.00 (from $24.00) while maintaining a Buy rating.

The analyst comments "While we see full-year earnings as likely intact and market sentiment already cautious/skeptical (as reflected in ~9.8x NTM P/E), we head into NOMD's 1Q24 results somewhat wary on top-line trends. Acknowledging gaps in European Nielsen data by channel/category/geography, sequential trends in what is captured have deteriorated ( -2.3% 1Q24 to-date vs. +2.7% in 4Q23, with consumption over the last 4 weeks running -5.1%). On the plus side, volume trends have improved (-1.2% overall in 1Q24 quarter to date vs. -4.8% over the past year), but this has come at a cost (price/mix -1.1%) and has not resulted in sustainable share gains (especially in core Frozen Fish/Seafood categories: down -70 bps in value terms over the last 12 weeks, -50 bps in volume terms). Moreover, exiting the quarter over the last 4 weeks, as price investments eased (total portfolio pricing ~flat), volume declines accelerated (-4.9%), as did share losses (-1.3 pts in value terms, -1.1 pts in volume in Frozen Fish/Seafood)—speaking to a still-intense competitive environment and value-centric consumer backdrop."

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