NOMD - Nomad Foods is tipped by Mizuho to be a food sector outperformer

Mizuho Securities weighed in on Nomad Foods Limited ( NYSE: NOMD ) following the company's Q2 earnings report .

The firm maintained a Buy rating on Nomad despite the increasingly tough macro backdrop.

Analyst John Baumgartner thinks the macro headwinds are already reflected in sentiment and said the firm's analysis of historical frozen food consumption suggested volume and elasticity may outperform into 2023.

On valuation: "NOMD shares are at a 52-week low (-30% ytd vs. XLP's -5% and Bloomberg Eurozone's -21%) reflecting rising geopolitical risks in Europe and company-specific supply chain uncertainties. Market volatility preserves the risk that shares have yet to bottom, but we believe Street estimates through FY23 are beatable."

Mizuho has a price target on NOMD of $24 to rep 37% upside from Thursday's closing price. The 52-week trading range for NOMD is $17.27 to $28.92.

Seeking Alpha author Yannick Frey is also bullish on Nomad Foods.

Dig into the Nomad Foods earnings call transcript for more details on the company's outlook through 2023.

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