Nomad Foods Ltd (NOMD) PT Raised to $26 at Mizuho, Keeps as a Top Pick
Mizuho analyst John Baumgartner raised the price target on Nomad Foods Ltd (NYSE: NOMD) to $26.00 (from $24.00) while maintaining a Outperform rating.
The analyst comments "Our Take: Maintaining as a Top Pick: Productivity Robust & High Confidence for Beat & Raise FY25: Q4's solid EBITDA beat was supported by a ramp in productivity (worth +160bps to gross margin vs. ~90bps each in Q2 & Q3) and consistent with our thesis that efficiencies are an overlooked/under-appreciated support for multi-year EBITDA growth. We are also pleased with a sharp ramp in FY25E product renovation & innovation along with very sound early market share successes associated with "Lift & Launch" distribution expansion; established brand equities in existing categories provide material support for adjacent product introductions. Reflecting Q4's beat and higher FY24 base for EBITDA, we are increasing our FY25E (€587MM vs. prior €579MM) and model FY26E at €618MM (+5% yr/yr). EBITDA upside also drives a positive revision to our price target ($26 from $24) on ~10x our CY25E EBITDA (10% discount vs. U.S. Food peers)."