DA Davidson Lowers Mama's Creations (NASDAQ:MAMA) Price Target to $22.00

Key Points

• DA Davidson lowered Mama’s Creations’ price target to $22 from $25 but maintained a “buy” rating, implying roughly 37% upside from the prior close. Analysts overall remain moderately bullish, with a consensus target of $19.33.
• Mama’s Creations reported quarterly revenue of $54.6 million and EPS of $0.06, exceeding analyst expectations. Revenue rose 55% year over year, while net income more than doubled and adjusted EBITDA increased 69%.
• Retail expansion and a stronger balance sheet support the growth outlook, but investors should monitor the 24.0% gross margin, recent share dilution, and the stock’s elevated valuation.

Mama's Creations (NASDAQ:MAMA - Get Free Report) had its price objective dropped by stock analysts at DA Davidson from $25.00 to $22.00 in a report released on Friday, Benzinga reports. The firm presently has a "buy" rating on the stock. DA Davidson's target price would suggest a potential upside of 37.16% from the company's previous close.

Other equities analysts also recently issued reports about the company. Benchmark began coverage on Mama's Creations in a research note on Tuesday, July 21st. They issued a "buy" rating and a $25.00 target price for the company. Wall Street Zen lowered Mama's Creations from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Weiss Ratings lowered Mama's Creations from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, August 19th. Zacks Research cut Mama's Creations from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 28th. Finally, Lake Street Capital restated a "buy" rating on shares of Mama's Creations in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $19.33.

Mama's Creations Stock Up 0.5%

Shares of Mama's Creations stock traded up $0.08 during trading on Friday, reaching $16.04. The company had a trading volume of 273,438 shares, compared to its average volume of 502,650. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.90 and a current ratio of 2.32. Mama's Creations has a fifty-two week low of $8.67 and a fifty-two week high of $21.00. The firm's fifty day moving average is $17.62 and its 200-day moving average is $16.12. The company has a market cap of $656.68 million, a price-to-earnings ratio of 114.57 and a beta of 0.56.

Mama's Creations (NASDAQ:MAMA - Get Free Report) last issued its earnings results on Thursday, September 3rd. The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.05 by $0.01. Mama's Creations had a return on equity of 14.69% and a net margin of 3.21%.The company had revenue of $54.58 million during the quarter, compared to analyst estimates of $52.85 million. On average, analysts anticipate that Mama's Creations will post 0.24 EPS for the current year.

Institutional Trading of Mama's Creations

Several institutional investors have recently modified their holdings of MAMA. Persistent Asset Partners Ltd bought a new stake in Mama's Creations in the second quarter worth about $59,000. Legal & General Group Plc acquired a new position in shares of Mama's Creations in the 2nd quarter worth approximately $65,000. Group One Trading LLC bought a new stake in shares of Mama's Creations in the 2nd quarter worth approximately $81,000. Walleye Capital LLC acquired a new stake in Mama's Creations during the second quarter valued at approximately $87,000. Finally, Prudential Financial Inc. acquired a new stake in Mama's Creations during the second quarter valued at approximately $100,000. Institutional investors and hedge funds own 45.18% of the company's stock.

Mama's Creations News Summary

Here are the key news stories impacting Mama's Creations this week:

• Positive Sentiment: Strong quarterly growth: Revenue rose 55% year over year to $54.6 million, ahead of the $52.85 million consensus estimate. Diluted EPS increased to $0.06 from $0.03 and topped expectations of $0.05. Mama's Creations Reports Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Profitability improved: Net income more than doubled to $2.6 million, while adjusted EBITDA climbed 69% to $5.5 million. Operating expenses declined as a percentage of revenue, and adjusted EBITDA margin expanded to 10.1% from 9.3% a year earlier. Mama's Creations Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Retail momentum continued: Mama’s added more than a dozen product placements, was selected for Costco’s national second-half multi-vendor mailer across all eight regions, and plans its first Kroger launch in more than 100 stores. Additional placements are planned with Albertsons, BJ’s, Sam’s Club, Ahold, Food Lion and other retailers.
• Positive Sentiment: Greater financial flexibility: Cash reached $138.6 million, supported by $11.9 million of operating cash flow and approximately $108.6 million in net proceeds from a July stock offering. Management said the strengthened balance sheet improves its ability to pursue accretive acquisitions and supports its longer-term path toward $1 billion in revenue and mid- to high-20% gross margins. Mama's Creations Signals Sharper Line of Sight to $1 Billion Revenue
• Neutral Sentiment: Margin remains a watch point: Gross margin was 24.0%, below 24.9% a year ago, although it improved sequentially from 23.6% as recent product launches moved toward steady-state production.
• Negative Sentiment: Share dilution and valuation risk: The stock offering substantially increased cash but also expanded the share count. With MAMA trading at a high earnings multiple, investors may require continued rapid growth and successful acquisitions to justify the valuation.

Mama's Creations Company Profile

Mama's Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini's, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

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