Imperial Capital Reiterates Outperform, Raises PT On Landec On 3Q15 Update

In a report published Thursday, Imperial Capital analyst Mitchell B. Pinheiro reiterated an Outperform rating on

, and raised the price target from $17.00 to $18.00. In the report, Imperial Capital noted, "We are maintaining our Outperform rating on LNDC shares and raising our one-year price target to $18 from $17. Our price target is about 25% above the recent share price. LNDC's 3Q15 was largely as expected, with strong growth coming from the Apio fresh cut vegetable business (salad kits, in particular) and lower Lifecore sales as the company is still cycling through lower sales from its largest customer that is reducing inventory. "We expect more of the same in 4Q15 and FY16 continues to appear like a strong recovery year driven by continued strength at Apio and a return to sales growth in the Lifecore segment. We are maintaining our FY15 EPS estimate of $0.57 (3Q higher by $0.01; 4Q lower by $0.01). We are lowering our FY16 EPS estimate to $0.90 from $0.95 to reflect a lower non-cash change in the fair value of Windset, offset by higher revenue and margins in the Apio and Lifecore segments." Landec closed on Wednesday at $14.28.