LNDC - Optimistic About Landec's Strategic Initiatives And Sodium Hyaluronate Products

• Landec’s most relevant business segment focuses on the sale of fresh packaged salads and vegetables. However, the company also sells avocado products and sodium hyaluronate-based products.
• I studied the sales growth reported by Lifecore. In 2021, this business segment reported a sales growth of 14%.
• I believe that Landec’s new strategic direction is about to bring a significant amount of cash, which could be used to hire new employees or design new products.
• In my view, traders will most likely see FCF generation in the coming years.
• If we use an exit multiple of 25x, the implied share price would be equal to $10. With an exit multiple of 34x, the fair price would be closer to $25.

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