Nomad Foods Positioned for Growth as Analysts Predict Strong Year

Mizuho's John Baumgartner raised their price target on Nomad Foods (NYSE: NOMD) by 7.7% from $26 to $28 on May 10, 2024. The analyst maintained their Strong Buy rating on the stock.

Nomad Foods, a manufacturer of frozen food products, recently reported its Q1 2024 earnings. Despite missing the Zacks Consensus Estimate for EPS, the company demonstrated positive growth in various areas. Baumgartner highlighted the company's investments in analytics, internal collaboration, and external cross-selling as key factors that will benefit Nomad Foods' revenue and EBITDA.

In Q1 2024, Nomad Foods reported an EPS of $0.40, which missed both the Zacks Consensus Estimate of $0.41 and the EPS from the same quarter in 2023, which was $0.49, representing an 18.4% decrease. However, the company's revenue of $850.9 million exceeded the Zacks Consensus Estimate, although only by 0.9%. Additionally, Nomad Foods' adjusted EBITDA of $131.5 million showed a significant 16.4% year-over-year increase.

Looking ahead, Nomad Foods' management has provided guidance for FY 2024, indicating that they expect EPS to be between $1.89 and $1.94. They also anticipate revenue growth of 3% to 4% and adjusted EBITDA growth of 4% to 6%. CEO Stéfan Descheemaeker expressed satisfaction with the company's performance in Q1, emphasizing the progress made in their growth initiatives and the improvements in volume and market share trends.

Analysts have a positive outlook on Nomad Foods, with 100% of top-rated analysts currently rating the stock as either a Strong Buy or Buy. Notably, no analysts recommend holding or selling the stock. The consensus forecast among analysts is that Nomad Foods' upcoming year will deliver an EPS of $1.84, representing a 26.6% increase on a year-over-year basis.

Since Nomad Foods' latest quarterly report, the stock price has risen by 0.8%. However, on a year-over-year basis, the stock is down 1.4%. During this period, Nomad Foods has been trailing the S&P 500, which has experienced a decline of 26.2%.

John Baumgartner, the Mizuho analyst who raised the price target on Nomad Foods, is ranked in the top 18% of Wall Street analysts by WallStreetZen. With an average return of 6.8% and a win rate of 63.8%, Baumgartner specializes in the Consumer Defensive, Healthcare, and Consumer Cyclical sectors.

Nomad Foods, founded in 2015 and headquartered in Feltham, UK, offers a wide range of frozen food products, including fish fingers, coated fish, vegetables, poultry and meat products, noodles, pasta, soups, pizzas, bakery goods, and meat substitutes.

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