Landec Corp Falls 3.5% After Downgrade From Feltl And Company

Feltl and Company downgraded Landec Corporation (NASDAQ: LNDC) from Buy to Hold and lowered its price target from $12.75 to $10 in a report issued Thursday.

Analyst Brent R. Rystrom expressed concern “that headwinds at the Lifecore unit and the Windset investment will limit upside in the stock the next 2-3 quarters and may actually cause it to drift lower. Our concerns are short-term in nature and we believe the stock will be higher than current prices 2-3 years from now.”

Rystrom continued by stating that the company “reported EPS of $0.09 for the quarter, in-line with our estimate but a 50 percent decrease from the same quarter last year. This was due to a significantly smaller increase in the fair market value of the Company’s investment in Windset Farms.”

The report concluded by lowering  “FY 2015 EPS to $0.58 from $0.70 to reflect the changes in our assumptions for Lifecore and Windset.  Our price target assumes that LNDC trades at 17 times our FY2015 EPS estimate compared to the present multiple of 16.1 times reported FY2014 EPS.”

Landed Corporation closed at $11.13, down 3.55 percent.