This year was challenging and turbulent. The covid-19 pandemic caused the global economic crisis, and lots of stocks suffered. However, analysts think that coming 2021 year will bring more success and stability. There are some stocks, which are bound to gain, and experts recommend to grab their shares now until the prices skyrocket. SunOpta is one of such stocks.
The health snack company offers lots of different products, including fruit-based snacks, plant-based beverages, teas, broth and stocks, along with sunflower and roasted snacks. SunOpta markets through food service institutions, as well as through private label and co-manufacturing distribution.
The stock’s market cap reached $962 million, after spectacular share price growth during the last year. SunOpta surged forward by an impressive 328% this year, surpassing the general markets.
The company’s Q3 revenues were $314.9 million, rising by a 6.4% year-over-year. Meanwhile, EPS reports were also better than the previous year.
Craig-Hallum’s analyst Alex Fuhrman thinks that SunOpta has great potential. He rated the stock as a Buy, setting his price target at $15. With this price target, shareholders could gain 40% over a year.
Why does the analyst recommend this stock?
Fuhrman believes that SunOpta’s focus on high-value plant-based beverages and foods should command a premium valuation with opportunities for a rise to estimates as the global economy recovers from coronavirus.
Fuhrman’s optimism is mostly based on the company’s niche. According to the analyst, plant-based food stocks may command a premium valuation to other food companies for the foreseeable future, considering compelling environmental benefits and faster growth trends. Plant-based products are currently less than 1% of the $695B grocery market at just $4.5B in sales. However, it is easy to envision it, representing a double-digit share of grocery sales in the future.
Wall Street analysts agree with Fuhrman, giving SunOpta a Strong Buy rating. The shares are selling for $10.70 now. The stock’s average price target is $15, with the potential of 40% growth.
- Trading Instrument
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.
View original post