NOMD - Nomad Foods upgraded at Goldman following Q4 earnings

Earnings results reported late last week encouraged Goldman Sachs to Upgrade Nomad Foods( NYSE: NOMD ) to Buy from Neutral on Monday.

Equity analyst Jason English explained that the results and guidance amounted to a “reset of expectations” for the company.

“As we had anticipated, management issued a below consensus EPS outlook which we welcome as a clearing event,” he said. “We believe estimates have now bottomed and we believe its robust sales momentum has the potential to flow through to higher EPS through the year, even after contemplating higher re-investments and interest expenses.”

English expects upward revisions are likely in 2023, leaving the stock as an “attractive investment opportunity” as compared to peers. While continued inflationary pressure is expected, pricing moves are expected to offset this impact. As such, gross margins are expected to remain stable in the year.

Shares of Nomad Foods ( NOMD ) rose 1.6% in premarket trading on Monday, extending a 3.26% gain marked on Friday.

Read more on the company’s latest earnings results .

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