-- Stifel Canada on Friday reiterated its buy rating on the shares of Lassonde Industries (LAS-A.TO) and its C$280.00 price target as it hosted investor meetings with fruit juice and snacks company.
"We recently hosted investor meetings with Lassonde. Most of the discussions focused on growth plans and investments. We believe Lassonde is under-appreciated given its depressed valuation. The company has (1) organic revenue growth opportunities from recently introduced formats and further penetration in various distribution channels, (2) cost savings opportunities with the New Jersey plant, and (3) M&A opportunities. Lassonde's recent acquisition, Summer Garden, has been a success with a smooth integration and healthy synergy realization. This provides the company with credibility to make further acquisitions. It is not clear how long valuation will remain depressed, below 10x forward earnings, and what catalyst could help valuation re-rate closer to its historical level of 13x. A potential return to historical valuation would represent a stock price of $360, up more an upside of more than 50% from current levels. We believe the current share price provides investors with an appealing entry point," analyst Martin Landry wrote.
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Price: $230.00, Change: $-0.21, Percent Change: -0.09%