UPDATE: Imperial Capital Initiates Coverage on Lifeway Foods as Valuation is Tough to Digest

In a report published Wednesday, Imperial Capital analyst Mitchell B. Pinheiro initiated coverage on

with an In-Line rating and $16.00 price target. In the report, Imperial Capital noted, “We are initiating coverage on Lifeway Foods (LWAY) with an In-Line rating and one-year price target of $16, implying upside potential of 8% from recent levels. Buoyed by increasing consumer awareness on the benefits of kefir (a drinkable dairy beverage) and probiotics, LWAY's leadership in the kefir category (95% share) puts the company in position to maintain solid double-digit top bottom line growth over the next several years. Higher milk costs in the near term temper our enthusiasm for the stock at current levels.” Lifeway Foods closed on Tuesday at $14.86.