Laird Superfood Inc (LSF) is a stock exchange newcomer that only went public in September of this year. The company manufactures and sells a large variety of food ingredients and snacks based on plants, and are best known for its brand of non-dairy specialty coffee creamers. Laird is targeted at clients who want their diet to diversify.
The business announced financial performance for the third quarter after the September IPO. Revenue amounted to $7.6 million which was very high, beating the estimate by more than 26%. Moreover, relative to last year, the outcome improved by 118 percent. Online revenue growth of 115 percent YoY was also reported by the firm. E-commerce currently accounts for 49 percent of Laird’s net revenue, which during the pandemic is not unexpected.
Canaccord analyst Robert Burleson is hopeful. He said we continue to see LSF as an appealing forum to take advantage of strong growth patterns in demand for plant-based goods, adding that LSF’s multi-channel strategy is competitively differentiated. In order to gain traction in a large spectrum of plant-based product categories, we expect LSF to be able to maximize its brand and vertically integrated operations over time, resulting in unprecedented sales growth and substantial margin improvements.
With a market capitalization of $438 million, Laird Superfood is a smaller firm, so it can also pass under the radar of many institutional investors. But the smaller players can also take advantage of the stock’s prospects as it has to take off yet. The stock price remained unchanged on Wednesday at $45.49 with only 67,400 shares traded during the session. Since its IPO the company has added nearly 7% to its stock price.
By setting a price target of $70, Burleson made “Buy” recommendation for the stock. That suggests the likelihood that the stock would raise by 53 percent throughout the year.
In their recommendation to buy, three Wall Street analysts are unanimous. The $62.33 average price target indicates next year’s expected rise of 37 percent.