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Investing.com - BTIG lowered its price target on Nomad Foods Ltd (NYSE:NOMD) to $18.00 from $20.00 while maintaining a Buy rating on the frozen food company. The stock, currently trading at $13.76, has declined nearly 30% over the past six months and sits close to its 52-week low of $13.58.
The downward revision follows Nomad’s recent conference presentation, management discussions, and developments in European markets that prompted BTIG to trim its sales and earnings estimates for the current year and next.
BTIG cited "market-specific dynamics" likely weighing on profitability this year, along with the impact of advertising and promotion investment and incentive compensation reset expected next year.
The research firm noted that Nomad’s new medium-term outlook represents a "sizable stepdown" from guidance provided early last year, which BTIG believes explains the stock’s recent performance challenges.
Despite the reduced target, BTIG maintained its Buy rating, noting shares "remain cheap" with "realistic" medium-term cash flow and margin opportunities, though acknowledging the lack of obvious catalysts to attract investors or counter the downward multiple rerating seen in recent years.
In other recent news, Nomad Foods has announced its second-quarter 2025 earnings, reporting an earnings per share (EPS) of $0.40, which surpassed analyst expectations of $0.38. However, the company’s revenue for the quarter was $747 million, falling short of the anticipated $770.67 million. Despite the earnings beat, the revenue miss has been a point of concern for investors. Additionally, Nomad Foods reiterated its financial guidance for 2025, maintaining a forecast of flat to -2% organic revenue growth year-on-year. The company projects an Adjusted EBITDA decline of 3% to 7%, with Adjusted EPS expected to be between €1.64 and €1.76. Nomad Foods also unveiled a €200 million efficiency plan aimed at operational savings through 2028. This plan is part of the company’s strategy to enhance financial performance amid challenging market conditions.
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