Mission Produce Projects $25M Cost Savings and 42.7% Upside to $16
AVO•UBS raised Mission Produce’s price target to $16, implying a 42.7% upside from $11.22, as the company aims to deliver $25 million in cost savings through its Calavo Products acquisition. Q2 revenue was $290.9 million with a $7.2 million net loss and Q3 EBITDA guidance of $28–$32 million.
1. UBS Price Target Raised to $16
UBS set a $16 price target for Mission Produce shares, implying a 42.7% upside from the $11.22 share price and reflecting optimism in the company’s growth trajectory.
2. Calavo Acquisition to Deliver $25 Million Savings
The acquisition of Calavo Products will expand packing capacity and supply chain flexibility, with expected annual cost savings of $25 million to boost profit margins and operational efficiency.
3. Q2 Financial Results: Revenue, Loss and Volume Trends
In Q2 fiscal 2026, Mission Produce generated $290.9 million in revenue but recorded a $7.2 million net loss, driven by a 36% drop in avocado prices that offset a 15% increase in sales volume.
4. Share Repurchase and Future EBITDA Guidance
The board authorized a $100 million share repurchase program over three years and provided Q3 adjusted EBITDA guidance of $28 million to $32 million, underlining support for the stock and anticipated profitability improvements.
