Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 5 Dec, 24 | AVO | Buy | USD 12.73 | USD 13.88 | USD 14.89 | 15 days | 17.0% |
Data Powered by EOD Historical Data (“EODHD”).
Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.
Higher EBITDA Margin: 6.1% in Q2 FY24 vs 2.7% in Q2 FY23
Higher Gross Margin: 10.4% in Q2 FY24 vs 8.2% in Q2 FY23
Lower Operating Margin: 4.1% in Q2 FY24 vs Industry Median of 8.1%
Lower Net Margin: 2.4% in Q2 FY24 vs Industry Median of 4.1%
Global Slowdown, Macro-economic Challenges, etc
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 12.73 | 11.08 | 13.88 | 14.89 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Decent Q3 FY 2024 Results: AVO's total revenue increased 24% to $324.0 Mn as compared to the same period last year and net income was $12.4 Mn, or $0.17 per diluted share as compared to $6.6 million, or $0.09 per diluted share, for the same period last year
Global Sourcing Network: The company's management demonstrated optimism about leveraging the global sourcing network to meet customer demand amid a more challenging production year for the farming operations in Peru.
AVO is expecting Marketing & Distribution segment to deliver another strong performance, as the team effectively leveraged its global sourcing network amid a sustained higher pricing environment to achieve per-unit margins exceeding the targeted range. Considering the facts, the stock might trade at a slight premium to its peers.
Considering the current stock trading levels, a ‘Buy’ recommendation has been given on the stock at the closing market price of USD 12.73 per share, as on 04 December 2024
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Defensive Industry: Food Distribution
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AVO Mission Produce Inc |
0.32 2.21% | 14.77 | 39.00 | 43.67 | 0.80 | 1.70 | 0.95 | 12.41 |
| SYY Sysco Corporation |
-0.89 1.16% | 76.08 | 20.66 | 16.72 | 0.48 | 17.38 | 0.63 | 12.66 |
| JRONF Jerónimo Martins SGPS S.A |
- -% | 19.23 | 18.10 | 22.22 | 0.53 | 5.17 | 0.62 | 8.78 |
| JRONY Jeronimo Martins SGPS SA ADR |
-0.17 0.45% | 37.66 | 19.98 | 23.09 | 0.54 | 5.70 | 0.62 | 8.86 |
| BZLFY Bunzl plc |
0.08 0.39% | 20.63 | 12.45 | 17.09 | 1.31 | 2.10 | 1.20 | 11.87 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 4, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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