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Research Alert: CFRA Maintains Hold Opinion On Shares Of National Beverage Corp.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of National Beverage Corp.
Jul 7, 2025 11:03 AM

01:30 PM EDT, 07/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $6 to $48, based on 22.9x our FY 27 (Apr.) EPS estimate, a justified discount to FIZZ's 5-year average forward P/E of 26.3x. We maintain our FY 26 EPS of $2.05 and introduce FY 27 at $2.10. We maintain a Hold, seeing better opportunities across the soft drinks industry, but the company's 5.5% net sales improvement in the most recent quarter was positive and margin headwinds appear to be abating. In FY 25, margins benefited from a decline in packaging costs and the increase in average selling price per case, partially offset by the decrease in case volume. Our Hold opinion reflects a valuation that appears fair and a lack of fundamental catalysts. The company has one of the weaker growth profiles in the soft drinks industry, as LaCroix volumes have been hurt by rising competition in the flavored sparkling water segment. FIZZ generates strong free cash flow and has a balance sheet with net cash, but it lacks product and brand diversification relative to larger companies.

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