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What Do Analysts Recommend for Cal-Maine Foods after 4Q16?

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Analysts’ recommendations for Cal-Maine Foods

As of July 18, 2016, Cal-Maine Foods (CALM) was trading at $44.18. Since we discussed analysts’ recommendations for Cal-Maine Foods in Can Cal-Maine Foods Regain Its Momentum? there haven’t been many changes in the ratings. However, there’s a slight increase in the target price after the earnings release. The results show that analysts are consistent with the recommendations mentioned earlier. 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.”

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Analysts’ target prices for Cal-Maine Foods

The average broker target price for Cal-Maine Foods rose slightly to $42.25 from $41.5. However, this is 4.5% lower than the closing price of $44.18 on July 18, 2016.

The broker target price and return potential for Cal-Maine’s peers are as follows:

  • Hain Celestial (HAIN) – target price of $52.05 and return potential of 0.15%
  • WhiteWave Foods (WWAV) – target price of $54.75, beat estimates by 1.7%
  • TreeHouse Foods (THS) – target price of $105.08 and return potential of 3.2%

WhiteWave Foods forms 1.4% of the iShares S&P MidCap 400 Growth ETF (IJK).

Recommendations

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 ~2%—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. After the 4Q16 earnings, the firm increased its target price to $40.

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