Lancaster Colony initiated with neutral view at DA Davidson, here’s why

DA Davidson analyst Brian Holland initiated coverage of Lancaster Colony with a Neutral rating and $185 price target. Given an increasingly challenging demand backdrop and management having tempered near term gross margin expectations, the analyst says the risk-reward “appears balanced.” The analyst, who adds that Lancaster is poised to flip from having among the most inflationary cost baskets in Food to the most deflationary and is emerging from a period of heavy capital investment, says the rating call is “more about timing.”