LMNR - Limoneira stock lifted by Buy initiation at B. Riley

2023-04-06 11:30:31 ET

B. Riley Securities started coverage of Limoneira Company ( NASDAQ: LMNR ) at Buy on Thursday, eyeing upside for lemon prices.

Equity analyst Raj Sharma voiced his belief that the company “has significant potential to continue its pivot from a farmer to an asset-light packer/marketer/shipper,” helping the company expand and profitably manage farmland. Further, food inflation is anticipated to bolster profits for the citrus seller.

“Although lemon and avocado price increases have been muted lately, we expect continuing food inflation, a supply correction, and harsh weather this season to boost prices,” Sharma wrote. “The lemon oversupply in the past few years has presented an opportunity for LMNR to consolidate the supply of lemons through its packing and shipping service to maintain profitability in its lemon operation.”

He started coverage at Buy and assigned the stock a $24 price target. Shares of Limoneira ( LMNR ) rose 2.8% in midday trading on Thursday, extending an over 35% jump year to date.

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