As of June 28, 2016, Cal-Maine Foods (CALM) was trading at $41.91. We’ll discuss what Wall Street analysts recommended for Cal-Maine Foods after the earnings estimate revision. Let’s see what the assigned price target for Cal-Maine Foods is over the next 12 months. The results show that most of the analysts, close to around 80%, favor a “hold” rating for the stock and 20% rate it as a “sell.” None of them rate the stock as a “buy.”
Analysts’ target prices for Cal-Maine Foods
The average broker target price for Cal-Maine fell drastically since its results in the last quarter. The price fell from $55.5 to $41.5. However, this is 0.97% lower than the closing price of $41.91 on June 24, 2016. As analysts reduce their target prices for the next 12 months, Cal-Maine’s share price could fall more or vice versa.
The broker target price and return potential for Cal-Maine’s peers are as follows:
- Pilgrim’s Pride (PPC) – target price of $26.50 and return potential of 6%
- Hormel Foods (HRL) – target price of $39.25 and return potential of 11%
- Tyson Foods (TSN) – target price of $77.40 and return potential of 22%
Tyson, Hormel, and Cal-Maine are part of the PowerShares Dynamic Food & Beverage ETF (PBJ). PBJ invests 4.9% in Tyson, 5% in Hormel, and 2.5% in Cal-Maine. Cal-Maine also forms 1.5% of the holdings of the PowerShares DWA Consumer Staples Momentum Portfolio (PSL).
BB&T Capital Markets upgraded Cal-Maine
On June 16, BB&T Capital Markets upgraded Cal-Maine to “hold” from “underweight.” It doesn’t have a target price for the stock. On the higher side, Stephens and CJS Securities gave Cal-Maine the highest target price of $45. This indicates a return potential of 8%—compared to the current trading price.
On the lower side, D.A. Davidson downgraded the stock to “underperform” from “neutral” on May 9. It assigned a lower target price of $37.