BofA update shows where active managers are putting money
On Friday, Stephens analysts maintained an Equal Weight rating on Lifecore Biomedical (NASDAQ:LFCR) following the company's reported revenue and adjusted EBITDA beat for the second quarter of fiscal year 2025. Lifecore Biomedical's revenues saw approximately an 8% year-over-year increase, fueled by a $3.8 million rise in revenue from the company's largest customer.
This growth was slightly offset by a $1.9 million decline in revenue from other Contract Development and Manufacturing Organization (CDMO) customers. Additionally, hyaluronic acid (HA) revenues increased by $0.5 million year-over-year, attributed to the timing of customer shipments.
During the second quarter, Lifecore Biomedical signed two new project agreements, which are expected to bolster their early stage development pipeline. The company's gross margins reached 34.0%, surpassing the 28.5% estimate and contributing to the adjusted EBITDA outperformance. The firm's operational expenditure control also played a role in exceeding financial expectations. Despite these positive outcomes, Lifecore Biomedical's stock experienced a sell-off of approximately 10% today.
Stephens analysts have reiterated their Equal Weight-Volatile rating for Lifecore Biomedical, indicating a neutral stance on the stock's investment potential. The company's financial guidance for the full fiscal year 2025 remains unchanged. The analysts are currently reviewing their estimates and price target for Lifecore Biomedical following the recent financial results.
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