Latest news with #KenGoldman
Yahoo
09-05-2025
- Business
- Yahoo
Long-Term Decline In Cereal Market Poses Structural Challenges For Kellogg, Analyst Says
J.P. Morgan analyst Ken Goldman on Tuesday assigned a Neutral rating on the shares of WK Kellogg Co (NYSE:KLG) with a price forecast of $19.00. The company reported first-quarter earnings per share of 20 cents, missing the street view of 34 cents. Quarterly sales of $663 million missed the analyst consensus estimate of $679.49 million. KLG revised its 2025 outlook, now expecting organic net sales to decline 2.0% to 3.0%, and adjusted EBITDA to be flat or down 2.0%, versus previous forecasts of milder declines and EBITDA outlook reflects modest tariff impacts on raw materials, assuming continued trade exemptions with Canada and Mexico, though the company warned future tariff changes could further affect results. On the positive side, the analyst sees significant potential for margin expansion and believes the stock's current low valuation could help support its price. However, the analyst remains cautious about the company's projections for EBITDA margin gains, especially given weak sales trends. The long-term decline in the cereal market poses structural challenges, and upcoming restructuring and capital expenditures will strain cash flow, noted the analyst. The analyst said KLG shares should trade at a discount compared to larger packaged food companies due to ongoing difficulties in the cereal category, substantial upcoming spending on capital projects and restructuring, and the company's smaller scale. Price Action: KLG shares closed lower by 3.90% to $17.23 on Wednesday. Read Next:Photo by JHVEPhoto via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Long-Term Decline In Cereal Market Poses Structural Challenges For Kellogg, Analyst Says originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
04-04-2025
- Business
- Yahoo
Lamb Weston May Keep Cutting Prices To Win Back Market Share, But Demand Recovery Remains Uncertain
J.P. Morgan analyst Ken Goldman reiterated the Neutral rating on Lamb Weston Holdings, Inc. (NYSE:LW) on Thursday, raising the price forecast from $65 to $66. Goldman cited medium-term risks tied to an ongoing supply and demand imbalance in the French fry market. Yesterday, the company reported third-quarter adjusted earnings per share of $1.10, beating the analyst consensus estimate of 87 cents. Quarterly sales of $1.521 billion (up 4% year over year) outpaced the street view of $1.492 billion. The analyst noted that while the industry holds long-term growth potential, current conditions present uncertainty, and visibility beyond the near term remains limited. Also Read: Goldman also projects that the company will continue adjusting prices to regain market share, but expressed doubts about whether demand will grow fast enough to match supply in the coming years. Still, the analyst acknowledged the long-term appeal. The analyst highlighted the difficulty in forecasting Lamb Weston's performance beyond the upcoming quarter due to several uncertainties surrounding fiscal year 2026. Goldman noted potential upside factors such as new customer contracts, lower potato input costs in North America, greater-than-expected cost savings, and increased share repurchases. Additionally, the analyst pointed out that FY26 will include an extra week, which could positively affect results. Meanwhile, Goldman also flagged several risks, including ongoing pricing initiatives to win business without guaranteed cost deflation, persistent challenges in the quick-service restaurant sector, a possible rise in overall fry supply, and uncertainties tied to tariffs. Price Action: LW shares are trading lower by 0.55% to $59.25 at last check Friday. Read Next:Photo via Shutterstock. Date Firm Action From To Oct 2021 Jefferies Maintains Buy May 2021 Stifel Upgrades Hold Buy Apr 2021 Goldman Sachs Downgrades Buy Neutral View More Analyst Ratings for LW View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Lamb Weston May Keep Cutting Prices To Win Back Market Share, But Demand Recovery Remains Uncertain originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
16-03-2025
- Business
- Yahoo
Hain Celestial Valuation Is Low Versus Historical Levels, But Analyst Remains Neutral - Here's Why
J.P. Morgan analyst Ken Goldman reiterated the Neutral rating on The Hain Celestial Group, Inc. (NASDAQ:HAIN), lowering the price forecast to $5 from $6. The analyst expressed a cautious outlook on The Hain Celestial Group, noting that the revised estimates and price forecast reflect the likelihood that sales trends are trending toward the lower end of the company's annual guidance, closer to a -4% decline rather than the more optimistic -3% forecast from Consensus Metrix. Goldman pointed out that while certain U.S.-based categories like baby food, tea, and yogurt are performing relatively better, the company's snack segment appears to be struggling, particularly in light of NielsenIQ data. Furthermore, the analyst speculated that the International segment may also underperform this quarter as consumers in key markets increasingly shift toward discount retailers, which could negatively impact the firm's sales in some of its major categories. Also Read: Despite the stock's low valuation compared to historical levels, the analyst remains neutral, citing concerns over the potential unreliability of the projected EBITDA figures that are used in consensus forecasts. The analyst revised EBITDA estimates, lowering 3Q25 to $40 million from $47 million, FY25 to $150 million from $158 million, FY26 to $154 million from $165 million, and FY27 to $158 million from $168 million, with all figures below Consensus Metrix projections. On the flipside, Goldman notes that CEO Wendy Davidson's broader strategy, focused on driving growth through efficiency-driven marketing and innovation, could yield long-term benefits. Additionally, some of the company's brands hold unique positions on shelves, with significant potential for expanded distribution. Price Action: HAIN shares are trading lower by 9.79% to $3.915 at last check Friday. Read Next:Photo by Ground Picture on Shutterstock. Date Firm Action From To Feb 2022 Consumer Edge Research Upgrades Equal-Weight Overweight Feb 2022 CFRA Maintains Buy Jan 2022 Mizuho Initiates Coverage On Buy View More Analyst Ratings for HAIN View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? HAIN CELESTIAL GROUP (HAIN): Free Stock Analysis Report This article Hain Celestial Valuation Is Low Versus Historical Levels, But Analyst Remains Neutral - Here's Why originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
