Market Overview

Shares Of National Beverage Corp. Continue To Bubble Up, Plenty Of Runway Ahead

Shares Of National Beverage Corp. Continue To Bubble Up, Plenty Of Runway Ahead

National Beverage Corp. (NASDAQ: FIZZ) reported robust third-quarter results ahead of the estimates on both sales and profit.

Credit Suisse’s Laurent Grandet maintains an Outperform rating on the company, while raising the price target from $75 to $60.

Q3 Results

National Beverage’s sales grew 20 percent during Q3, driven by LaCroix, while gross margins expanded 650 bps, representing the third successive quarter of meaningful gross margin mix benefit.

“We continue to think that LaCroix has plenty of growth runway ahead and that operating margins still have upside,” Grandet mentioned.

The analyst pointed out that LaCroix has higher margins than the rest of National Beverage’s business, which helps it grow at a pace of over 60 percent to become a larger contributor, benefiting from both margins and sales mix.

Runway For Growth

“LaCroix currently has around 65 percent ACV with a muted presence in c-stores. In our view, this channel is one of the more difficult to penetrate and supply given its highly fragmented nature,” Grandet stated.

The analyst believes that there could be meaningful upside if National Beverage partnered with a distributor to expand LaCroix, particularly in c-stores.

“The additional margin provided by the c-store channel would compensate in our view for the additional cost a third party would likely charge for the service,” Grandet explained.

The EPS estimates for FY 2017, 2018 and 2019 have been raised.

Related Links:

  • What Do Pepsi's Super Bowl Ads For Sugar-Free Products Mean For The Soda Market?
  • Do Sin Taxes Really Work?
  • Latest Ratings for FIZZ

    Mar 2020CFRAUpgradesSellHold
    Nov 2019GuggenheimMaintainsSell
    Sep 2019UBSMaintainsNeutral

    View More Analyst Ratings for FIZZ
    View the Latest Analyst Ratings


    Related Articles (FIZZ)

    View Comments and Join the Discussion!

    Posted-In: Analyst Color Earnings Long Ideas News Guidance Price Target Reiteration Analyst Ratings Best of Benzinga

    Latest Ratings

    BIIBRBC CapitalMaintains277.0
    RLICompass PointInitiates Coverage On90.0
    CSCOWolfe ResearchDowngrades42.0
    GILDRBC CapitalMaintains86.0
    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.
    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