Skip to main content

Market Overview

SunOpta's Forecast Looking Brighter

Share:
SunOpta's Forecast Looking Brighter

SunOpta, Inc. (USA) (NASDAQ: STKL) has significantly underperformed over the past several years, and now seems to be “in the early stages of a recovery,” Wunderlich’s Mitchell B. Pinheiro said in a report. He initiated coverage of the company with a Buy rating and $10 price target.

Over the past 15 years, SunOpta has made 35 acquisitions, all of which were operated somewhat independently, without meaningful integration. This resulted in significant inefficiency in strategic decisions and operational results, resulting in several negative surprises, Pinheiro mentioned.

Story Still Compelling

“Despite the execution issues, the backdrop of the SunOpta story remains compelling,” Pinheiro commented. The Global Ingredients business seems to be poised to benefit from robust demand growth for organic, non-GMO and specialty ingredients. The Consumer Products segment’s key categories are recording double-digit growth.

Brighter Prospects

SunOpta is expected to benefit from solid growth in the internationally sourced ingredients segment and new customer growth in the Consumer Product segment in the back half of 2016. The analyst expects 2017 to be a recovery year for SunOpta, with benefits from improved capacity utilization and a continued focus on cost reduction and SG&A leverage.

“While the company still has some near-term challenges, we expect sentiment to become more positive as growth in snacks and healthy beverages begin to outweigh the negatives. We believe the recent activist shareholder additions to the board and preferred stock investment are long-term positives for the stock,” Pinheiro added.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for STKL

DateFirmActionFromTo
Apr 2021Canaccord GenuityInitiates Coverage OnBuy
Dec 2020Craig-HallumInitiates Coverage OnBuy
Jul 2020DA DavidsonInitiates Coverage OnBuy

View More Analyst Ratings for STKL
View the Latest Analyst Ratings

 

Related Articles (STKL)

View Comments and Join the Discussion!

Posted-In: Mitchell B. Pinheiro WunderlichAnalyst Color Long Ideas Initiation Analyst Ratings Trading Ideas

Latest Ratings

StockFirmActionPT
SAMEvercore ISI GroupMaintains1,500.0
SEAutonomous ResearchInitiates Coverage On378.0
ALHCMorgan StanleyInitiates Coverage On36.0
ALHCRaymond JamesInitiates Coverage On30.0
HAEMorgan StanleyDowngrades83.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com