On Wednesday, H.C. Wainwright maintained a positive stance on Balchem (NASDAQ:BCPC) Corporation (NASDAQ:BCPC) stock, raising the 12-month price target to $185 from the previous $170 while keeping a Buy rating. This adjustment follows the company's second-quarter financial results released late last week.
Balchem posted a second-quarter top-line revenue of $234.1 million, which, although slightly higher than the $231.3 million from the same quarter the previous year, fell short of H.C. Wainwright's $247 million estimate and saw a decrease from the $239.7 million in the first quarter of 2024.
Despite this, the firm has updated its revenue forecast for the full year 2024 to $974.8 million, down from the initially projected $995.7 billion. The outlook for 2025 is more optimistic, with revenue expectations now at $1.09 billion, up from the earlier forecast of $1.07 billion.
The company's growth is anticipated to be driven by its Human Nutrition and Health segment, which is expected to contribute to revenue increases and sequential gains in subsequent quarters. Balchem's second-quarter GAAP net earnings outperformed expectations, with earnings of $0.98 per diluted share surpassing the forecasted $0.90.
For the full year of 2024, H.C. Wainwright predicts GAAP earnings of $3.81 per share, an increase from the previous estimate of $3.71. The firm's forecast for 2025 has also been revised upward, now expecting earnings of $4.40 per share compared to the earlier estimate of $4.23 per share. The raised price target reflects a slight increase in the earnings multiple applied to comparable companies in the industry, now at 45.6 times versus the previous 44.4 times.
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