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Investing.com - DA Davidson has lowered its price target on Lakeland Industries (NASDAQ:LAKE) to $20.00 from $23.00 while maintaining a Buy rating on the protective clothing manufacturer. The stock, currently trading at $13.80, appears undervalued according to InvestingPro analysis, despite falling 31% over the past six months.
The price target reduction follows Lakeland’s fiscal second-quarter 2026 earnings report, where EBITDA exceeded consensus expectations despite challenges that prompted a reduced full-year outlook. The company maintains a strong liquidity position with a current ratio of 3.66x and operates with moderate debt levels. InvestingPro analysis reveals 12 additional key insights about LAKE’s financial health and growth prospects.
DA Davidson cited tariffs and Latin American market conditions as temporary headwinds causing customer purchase delays, though the firm expects these customers will eventually need to purchase their equipment.
The company reported 14% organic growth for the quarter, with expectations of continued high-single-digit growth rates prompting DA Davidson to increase its revenue outlook for fiscal year 2027.
Despite the near-term challenges, DA Davidson highlighted Lakeland’s projected 23% EBITDA growth in fiscal year 2026, with potentially higher growth in fiscal 2027, positioning the company as what the firm called "a strong small-cap growth idea."
In other recent news, Lakeland Industries announced its financial results for the second quarter of 2025. The company reported earnings per share (EPS) of $0.08, which did not meet the analysts’ expectations of $0.2925. Additionally, Lakeland Industries’ revenue was $52.5 million, falling short of the anticipated $54.59 million. These results indicate a miss on both earnings and revenue forecasts, reflecting recent developments for the company. The financial performance has drawn attention from investors and analysts, as the figures were below the projections. The earnings announcement is a critical update for stakeholders monitoring Lakeland Industries’ financial health.
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