Analyst Recommendations for Lancaster: ~20% Rate It a “Buy”



Analysts’ recommendations for Lancaster

In the week leading up to Lancaster Colony Corporation’s (LANC) earnings release for the second quarter of fiscal 2016, Wall Street analysts provided target prices for the next 12 months.

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Consensus rating for Lancaster

Approximately 20% of analysts rate Lancaster as a “buy” and 80% rate it a “hold.” The average broker target price for LANC is $113, or 4.7% lower than the closing price of $118.7 on January 22, 2016. The company’s peers Mondelez International (MDLZ), General Mills (GIS) and Kellogg (K) have average broker target prices of $49, $58.8, and $72.3, respectively. These figures imply returns of ~18%, 6.2%, and 0.98%, respectively, in the next 12 months.

Lancaster is a component of the PowerShares DWA Consumer Staples Momentum Portfolio (PSL). The PSL ETF invests 2.3% of its portfolio in LANC. It also invests 2.6% in MDLZ.

Analysts’ target prices for Lancaster

Regarding individual recommendations, BB&T Capital Markets gave Lancaster the most optimistic target price of $126. This target price is 6.2% higher than the January 22 closing price of $118.7. BB&T Capital Markets rated Lancaster as a “strong buy.”

Wedbush and Sidoti & Company also gave optimistic price targets of $106 and $107, respectively, implying respective returns of ~11% and 10%, respectively, in the next 12 months. The two rated Lancaster as “hold.” No target prices were given by Wellington Shields and Hilliard Lyons as such. However, the two rated Lancaster as “hold.”


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