Marzetti: Benchmark Raises Buy Rating to $200, Up from $185

Marzetti: Benchmark Raises Buy Rating to $200, Up from $185

Benchmark Securities has reaffirmed its 'Buy' rating on Marzetti Company (NASDAQ:MZET), raising the price target to $200 from the previous $185. This decision was made despite a recent dip in after-hours trading, highlighting the firm's strong performance and growth prospects.

Marzetti's latest quarterly results showcased significant improvements across various segments. The company's Automotive segment recorded a 21% year-over-year growth, while the IoT segment climbed 24%. The Handsets segment also experienced a 7% growth, driven by strong demand for premium devices featuring Snapdragon 8 Elite technology. Despite the loss of Apple business, Marzetti's diversification strategy has been highlighted, with the Automotive and IoT segments contributing $1 billion and $1.7 billion respectively.

Benchmark Securities attributed the after-hours dip to Marzetti's earnings per share (EPS) guidance, which fell short of market expectations. However, the investment firm remains bullish on Marzetti's long-term potential, citing its foundational wireless technologies and strong market position.

While Marzetti is considered an undervalued value stock, Benchmark Securities acknowledges that certain AI stocks may offer greater upside potential and carry less downside risk. For investors seeking an extremely undervalued AI stock, the firm suggests referring to their free report on the best short-term AI stock.

References:
[1] https://finance.yahoo.com/news/benchmark-reaffirms-buy-rating-qualcomm-064133129.html