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Investing.com - Goldman Sachs initiated coverage on Cal-Maine Foods (NASDAQ:CALM) with a Neutral rating and a $110.00 price target on Thursday. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, demonstrates exceptional financial health with a current ratio of 6.38x.
The investment bank noted that Cal-Maine, as the largest producer and distributor of fresh eggs in the United States, has recently benefited from higher egg prices amid tight supply conditions caused by heightened impacts from highly pathogenic avian influenza (HPAI). This has contributed to impressive revenue growth of 83% over the last twelve months, with the company currently trading at an attractive P/E ratio of 4.39x.
Goldman Sachs expects egg market fundamentals to normalize over the coming year as supply conditions improve with flock recovery, while demand remains solid due to eggs being a low-cost protein source.
The firm pointed out that Cal-Maine’s stock price has shown a strong correlation to egg prices, with average egg selling prices being the primary driver of the company’s profitability, though margin variability may moderate as the company shifts toward more value-added products.
Goldman Sachs believes the current market conditions are already reflected in consensus estimates, resulting in a balanced risk/reward profile for Cal-Maine shares, particularly after recent stock outperformance has led to what the firm considers a full valuation.
In other recent news, Cal-Maine Foods reported impressive fourth-quarter 2025 financial results, with earnings per share of $7.04, surpassing the analyst consensus of $5.43. Revenue for the quarter reached $1.1 billion, significantly exceeding the expected $870.41 million and marking a 72% increase from the previous year. This strong performance was primarily attributed to higher egg prices, with the average selling price per dozen rising to $3.31 from $2.13 in the prior year. Following these results, BMO Capital raised its price target for Cal-Maine Foods to $105, while Stephens increased its target to $115, both maintaining their respective ratings. Additionally, Cal-Maine Foods has appointed Keira Lombardo as its first Chief Strategy Officer, bringing extensive experience from her previous roles in the food and agriculture industry. Furthermore, Melanie Boulden has been appointed as an independent director to the company’s Board of Directors, effective immediately. These developments highlight Cal-Maine Foods’ strategic growth and leadership expansion.
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