Lifecore Biomedical’s Promising Growth Trajectory: Buy Rating with 34% Upside Potential

Lifecore Biomedical (LFCR) has received a new Buy rating, initiated by William Blair analyst, Max Smock.

Max Smock has given his Buy rating due to a combination of factors that highlight Lifecore Biomedical’s promising growth trajectory. The company benefits from minimum volume commitments from its top customer, Alcon, which provide a solid foundation for Lifecore’s projected midterm revenue growth. This is expected to result in an 11.6% compound annual growth rate in revenue from fiscal 2025 to fiscal 2028, with a significant portion of this growth coming from Alcon’s take-or-pay agreements.
Additionally, Lifecore’s strong development pipeline and strategic business initiatives are anticipated to support its midterm revenue goals and sustain low-teens top-line growth over the longer term. The company is also expected to achieve meaningful margin expansion due to recent cost-cutting measures, leading to robust adjusted EBITDA growth. Despite trading at a premium compared to peers, Lifecore’s shares are projected to appreciate as the company meets its midterm targets, potentially reaching $9.00 per share by the end of fiscal 2027, offering a 34% upside from current levels.