On Wednesday, H.C. Wainwright adjusted its outlook on shares of Balchem (NASDAQ:BCPC) Corporation (NASDAQ:BCPC), increasing the 12-month price target to $185 from the previous $170 while maintaining a Buy rating on the stock. The revision follows the release of the company's second-quarter financial results for 2024.
Balchem reported top-line revenue of $234.1 million for the second quarter of 2024, which, while slightly lower than the analyst's projection of $247 million, was a marginal increase from the $231.3 million reported in the same period the previous year. Despite a sequential decrease from the first quarter's $239.7 million, the company's revenue for the second quarter demonstrated stability.
The firm has also updated its revenue forecasts for Balchem. The projection for 2024 has been adjusted to $974.8 million from the earlier estimate of $995.7 billion. The 2025 revenue forecast has been positively revised to $1.09 billion, up from the previous forecast of $1.07 billion.
The analyst anticipates that growth in Balchem's Human Nutrition and Health segment will contribute to revenue increases and drive sequential gains in forthcoming quarters.
Balchem's GAAP net earnings for the second quarter were reported at $0.98 per diluted share, surpassing the analyst's expectations of $0.90. The earnings forecast for the full year of 2024 has been raised to $3.81 per share, up from the prior estimate of $3.71. The earnings outlook for the full year of 2025 has also been improved, with projections now at $4.40 per share compared to the earlier estimate of $4.23.
The upgraded stock price target reflects a slight increase in the earnings multiple used by H.C. Wainwright, from 44.4 times to 45.6 times, based on comparisons within the industry. The Buy rating has been reiterated, indicating a positive stance on the stock's potential over the next year.
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