Lakeland Industries Eyes Turnaround: Analyst Highlights Comprehensive Fire Gear Portfolio

DA Davidson analyst Michael Shlisky initiated coverage on Lakeland Industries Inc. (NASDAQ:LAKE) on Wednesday, with a price target of $28.

The analyst notes Lakeland is a major player in personal protection and safety gear for firefighters and other workers in hazardous environments.

There is still considerable growth potential for the company, particularly through the acquisition and integration of smaller brands.

A significant portion of this growth is focused on expanding its Fire segment, where Lakeland is developing a comprehensive global product portfolio, including services, Shlisky writes.

Overall, the analyst views Lakeland as a promising turnaround and growth story, still in the early stages of its journey.

Also Read: What’s Going On With SEALSQ Stock Today?

Shlisky highlights the company is in the midst of a turnaround under the leadership of its new CEO, who took over in early 2024.

Lakeland, previously focused on disposables, is now pursuing a strategy of building a comprehensive product portfolio, aiming to become a one-stop shop for fire departments.

The company has acquired smaller regional brands, like Jolly Boot and Veridian, and is leveraging its combined global platform to offer a full range of products.

Per Shlisky, this transformation is still in the early stages and is expected to be followed by higher-margin, recurring service revenues, such as decontamination services.

The analyst projects the company to report FY25 revenues of $36.3 million.

LAKE Price Action: Lakeland Industries shares are trading up by 0.59% to $20.51 at publication on Wednesday.

Read Next:

• These 4 S&P 500 Sectors Could Outperform The Market In April, If History Has A Say

Photo: Lin Xiu Xiu via Shutterstock