DA Davidson cuts target for Mama's Creations stock to USD 22.00

Published on 10/06/2026 at 04:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Revenue hit USD 54.58 million in fiscal 2027's second quarter, up 55.00 percent year over year. For Mama's Creations stock this means USD 138.6 million cash.

MAMA, US56146T1034, Illustration mit AI erstellt.

DA Davidson cut its price target for Mama's Creations stock from USD 25.00 to USD 22.00 on September 4, 2026, while keeping a Buy rating, according to MarketBeat. The reduction followed a second quarter of fiscal 2027 in which revenue rose 55.00 percent to USD 54.58 million and earnings per share reached USD 0.06.

Revenue growth clears expectations

Mama's Creations reported USD 54.58 million of revenue for the second quarter of fiscal 2027, compared with USD 35.20 million in the year-ago quarter. That 55.00 percent increase was accompanied by a 100.90 percent rise in net income to USD 2.57 million, according to Food Infotech.

The operating picture also improved below the revenue line. Adjusted EBITDA, a non-GAAP measure, increased 68.90 percent to USD 5.50 million, while adjusted EBITDA margin expanded to 10.10 percent from 9.30 percent in the year-ago quarter.

Cash reshapes acquisition capacity

Cash and cash equivalents reached USD 138.6 million as of July 31, 2026, compared with USD 20.0 million as of January 31, 2026. The increase followed a July stock offering that generated USD 108.6 million in net proceeds, while total debt stood at USD 4.8 million, according to The Globe and Mail.

The balance sheet gives management more room to pursue acquisitions, but the valuation debate remains important. MarketBeat reported an average 12-month analyst target of USD 20.00, based on five Buy ratings, one Strong Buy rating and two Hold ratings on October 3, 2026.

Margins remain the next test

Gross margin reached 24.00 percent in the second quarter of fiscal 2027, up from 23.60 percent in the first quarter but below 24.90 percent in the year-ago quarter. Zacks reported on October 3, 2026, that the company is working toward a mid-to-high-20 percent gross margin, with trade spending and product mix central to that effort. For investors, the key question is whether faster sales growth can continue while margin expansion catches up.

Target cut meets a stronger quarter

Mama's Creations had a market capitalization of USD 596.1 million as of October 5, 2026, with a 52-week range of USD 9.90 to USD 21.00. The company is listed on NASDAQ under ticker MAMA, and its second-quarter results exceeded the USD 52.85 million revenue consensus by USD 1.73 million, according to MarketBeat's October 3, 2026 report.