SunOpta initiated with bullish view at DA Davidson, here’s why

DA Davidson initiated coverage of SunOpta with a Buy rating and $8 price target. SunOpta’s risk/reward is attractive with the stock reflecting heightened market sensitivity to the plant based milk category, discounting portfolio transformation culminating in the recent divestiture of frozen fruit, the analyst tells investors in a research note. As the company emerges from reinvestment, a cash flow inflection and concurrent debt paydown should be well received, says the firm.