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BMO Capital Maintains Hold Rating on Cal-Maine Foods (CALM) Stock

Cal-Maine Foods, Inc. (NASDAQ:CALM) is one of the Best Mid Cap FMCG Stocks to Buy Now. Benjamin Mayhew from BMO Capital maintained a “Hold” rating on the company’s stock, with a price objective of $100.00. Despite the potential for increased earnings through FY 2026, thanks to the Echo Lake Foods acquisition and lower feed costs, the analyst believes that the risk/reward profile seems to be balanced. Furthermore, while Cal-Maine Foods, Inc. (NASDAQ:CALM) remains well-placed to grow its specialty and value-added product mix and improve shareholder returns, the analyst highlighted that the overall market conditions reflect a cautious approach.

A close-up of an organic egg being carefully washed and inspected before being packaged.

Cal-Maine Foods, Inc. (NASDAQ:CALM) has announced the closing of its acquisition of Echo Lake Foods. This acquisition enables Cal-Maine Foods, Inc. (NASDAQ:CALM) to enter the large, growing, and highly stable value-added food portion of the egg category. Furthermore, it expands strategic customer relationships with retail, quick service restaurants, as well as other food service customers. The addition of Echo Lake Foods advances Cal-Maine Foods, Inc. (NASDAQ:CALM)’s stated strategy to expand and diversify the product portfolio and customer mix. The combined product lines and capabilities of the 2 companies remain highly complementary.

Cal-Maine Foods, Inc. (NASDAQ:CALM) is engaged in the production, grading, packaging, marketing, and distribution of shell eggs and egg products. Diamond Hill Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Other top Q4 contributors included Centrus Energy, Graham Corp and Cal-Maine Foods, Inc. (NASDAQ:CALM). Fresh egg producer Cal-Maine Foods has benefited from an avian flu outbreak, which has led to a significant supply disruption and driven egg prices to record highs, in turn raising Cal-Maine’s share price.”

While we acknowledge the potential of CALM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CALM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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