MAMA Stock Forecast & Price Target

Mama's Creations Inc is experiencing a positive trajectory, as evidenced by a significant increase in promotional and advertising spending, which grew more than threefold year-over-year. The company's FY27 estimates predict healthy revenue growth in the high-single-digit percentage range alongside EBITDA margin expansion resulting from improved gross margins. Additionally, strategic initiatives, including heightened trade investment and operational enhancements, are expected to bolster brand awareness and customer loyalty, underscoring the company's commitment to long-term growth.

Mama's Creations Inc has reported a gross margin of 26.1%, which is below the company's estimated figure of 27.0%, primarily due to a significant 400 basis points increase in trade spend and rising commodity prices. The company is expected to reduce less profitable revenue streams, leading to a forecasted revenue decline of 5% in the upcoming year, suggesting challenges in maintaining sales growth. Additionally, ongoing commodity headwinds have negatively impacted the company's gross profit margin and EBITDA, raising concerns about the long-term growth trajectory and introducing potential downside risks to financial projections.