Nomad Foods stock price target lowered to $18 by BTIG on European challenges

Published 17/09/2025, 10:42
Nomad Foods stock price target lowered to $18 by BTIG on European challenges

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.