Update shared on05 Sep 2025
Despite strong revenue growth and improved EBITDA margins, analysts are maintaining a discounted multiple due to lingering ownership structure uncertainties, keeping Lifeway Foods’ consensus price target unchanged at $33.00.
Analyst Commentary
- Bullish analysts are raising price targets due to strong 10% revenue growth in the latest quarter.
- The company has demonstrated a return to mid-teen EBITDA margins, indicating improved operational efficiency.
- Analysts are maintaining previously applied valuation multiples on forward estimates, signaling stable confidence in the company's business model.
- There is upside potential if Lifeway can resolve complications arising from its major ownership structure and standstill agreement.
- Despite positive financial trends, a discounted valuation multiple is still being applied until ownership uncertainties are fully resolved.
What's in the News
- Lifeway Foods reported estimated net sales of $39.1 million for the first two months of Q3 through August 31, 2025, and expressed confidence in achieving the strongest annual sales in company history with over 20% quarterly growth to date.
- The company expanded retail distribution with the launch of Lifeway Kefir in the San Diego Costco region, now available in 60 Costco locations.
- Lifeway announced the return of its Basics Plus™ kefir and colostrum supplement shots and expanded its ProBugs® line with a new conventional whole milk kefir for kids in three flavors.
- Investor activists Edward and Ludmila Smolyansky continued their consent solicitation campaign to replace the board, accusing current management of rejecting a Danone buyout offer at a 72% premium, implementing a poison pill, and awarding a controversial bonus to the CEO.
- Institutional Shareholder Services (ISS) recommended shareholders do not support the dissident-led consent solicitation, stating the activists have not presented a compelling case for change.
Valuation Changes
Summary of Valuation Changes for Lifeway Foods
- The Consensus Analyst Price Target remained effectively unchanged, at $33.00.
- The Consensus Revenue Growth forecasts for Lifeway Foods remained effectively unchanged, at 14.9% per annum.
- The Net Profit Margin for Lifeway Foods remained effectively unchanged, at 10.74%.
Disclaimer
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