DA Davidson Cuts Marzetti (MZTI) Price Target, Flags Slowing Consumer Trends

The Marzetti Company (NASDAQ:MZTI) is included among the Dividend Kings and Aristocrats List: 32 Biggest Stocks.

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On March 16, DA Davidson lowered its price recommendation on The Marzetti Company (NASDAQ:MZTI) to $168 from $184. It reiterated a Neutral rating on the shares. The analyst said the firm sees potential value creation from Bachan’s and believes the company has levers to improve margins. At the same time, the firm noted some pressure points. The consumer remains cautious, food consumption is slowing, and Marzetti’s share growth has started to ease.

Earlier in February, the company said it had entered into a definitive agreement to acquire Bachan’s, Inc. Bachan’s is a fast-growing Japanese Barbecue Sauce brand known for its authentic, clean-label products. The company said the deal strengthens its position in the sauce category and opens up more growth opportunities through its retail and foodservice network, supply chain capabilities, and marketing and culinary expertise. Bachan’s generated about $87 million in net sales for the twelve months ended December 31, 2025.

The purchase price is $400 million, subject to customary adjustments. The company plans to fund the deal using cash on hand, along with additional financing. The transaction is expected to close before the fiscal year ends on June 30, 2026, pending regulatory approvals and other standard conditions.

The Marzetti Company (NASDAQ:MZTI), formerly Lancaster Colony Corporation, produces and sells specialty food products. Its portfolio includes brands such as Marzetti, New York Bakery, and Sister Schubert’s, along with Olive Garden dressings, Chick-fil-A sauces and dressings, Buffalo Wild Wings sauces, Arby’s sauces, Subway sauces, Texas Roadhouse steak sauces, and frozen rolls.

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