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Investing.com - Benchmark raised its price target on Marzetti Company (NASDAQ:MZTI) to $200 from $185 while maintaining a Buy rating following the company’s fourth-quarter earnings report. According to InvestingPro analysis, the stock appears slightly undervalued at current levels, with analyst targets ranging from $180 to $232.
Marzetti, formerly known as Lancaster Colony , reported fourth-quarter fiscal 2025 results on Thursday that met or exceeded consensus expectations. The company posted revenues of $458 million, excluding sales from a margin-less temporary supply contract at its recently acquired Atlanta facility.
The food manufacturer achieved an adjusted gross margin of 22.9%, representing a 130 basis point year-over-year improvement and exceeding expectations by 40 basis points. Adjusted earnings per share came in at $1.33, in line with estimates, while adjusted EBITDA of $61 million surpassed the consensus forecast of $60 million.
Retail sales growth reached 5.4%, outperforming management’s expectation of 2%, driven by strong performance in the licensed branded product portfolio and key Marzetti-owned brands. The Foodservice segment posted 50 basis points of revenue growth, slightly exceeding management’s forecast for a 0% to 1% revenue decline.
Benchmark’s price target increase is based on its newly introduced fiscal year 2027 adjusted EBITDA estimate of $334 million and a 16x forward EBITDA multiple, compared to the company’s historical range of 16x to 20x.
In other recent news, Marzetti Company reported its fourth-quarter fiscal 2025 earnings, meeting analysts’ expectations with an earnings per share (EPS) of $1.34. The company also surpassed revenue forecasts, reporting $475.4 million in revenue, which included sales from a margin-less temporary supply contract at its recently acquired Atlanta facility. Benchmark responded to these results by raising its price target for Marzetti to $200 from $185, while maintaining a Buy rating. DA Davidson, on the other hand, reiterated a Neutral rating with a price target of $193, noting the company’s solid quarterly performance. Marzetti’s earnings results met broader market expectations and exceeded DA Davidson’s "street high net sales forecast." Despite these positive financial results, the stock experienced a decline in premarket trading. These developments reflect a cautious investor sentiment amid broader market trends.
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