Favorable Tax Rate and Strong Opta Minerals Results Drove SunOpta's (STKL) EPS Beat; Canaccord Genuity Reiterates Buy
Canaccord Genuity maintained a Buy rating and $10.00 price target on SunOpta (NASDAQ: STKL) following the company's 3Q15 earnings report. SunOpta delivered adjusted EPS of $0.08 vs. consensus of $0.07. Both a favorable tax rate and stronger results than expected at Opta Minerals added a penny each to EPS, contributing to the upside.
Analyst Scott Winkle commented, "Q3 results were generally in line with Q2, which is all we would have expected, and we believe this is a favorable outcome for most investors. With some improvement evident in the Consumer Products segment and the acquisition of Sunrise Growers flowing into the results going forward, we expect the focus to turn to F2016 where we would expect margins to expand and revenue growth to resume after lower commodity costs and foreign currency have depressed sales growth in F2015. We maintain our BUY rating and believe improved earnings power in F2016 will drive the valuation higher."
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Shares of SunOpta closed at $5.66 yesterday.