SunOpta (STKL) PT Raised to $10 at Mizuho

Mizuho analyst John Baumgartner raised the price target on SunOpta (NASDAQ: STKL) to $10.00 (from $9.00) while maintaining a Outperform rating.

The analyst commented: "Solid Revenue Growth Unabated & Profit/FCF Upside Growing; Maintain Outperform: Q3's revenue beat, on a third consecutive quarter of 20%+ volume (+21% yr/yr), was driven by continued strength across customers, channels, and products. It reinforces STKL's structural advantages spanning product development and quality, and positioning across customers & segments outperforming the overall plant-based beverages category. Exiting FY24, the model's momentum is expanding with efficiency investments set to wrap by Q4-end (bullish for NTM gross margin) and related capacity efficiencies positioned to support growth "well into 2026"; in turn deferring potentially tens of $MMs in capex for at least another year. We're maintaining our FY24E and FY25E EBITDA, and raising our PT (to $10 from $9) on ‾15x our CY25E EBITDA."

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