Lumida
/AVO
⌘K
Mission Produce Inc

Mission Produce Inc

AVO
$13.59USD↓-0.80%-0.11 today

MARKET CAP

1.2B

P/E (TTM)

20.0x

FWD P/E

18.7x

DAY RANGE

$13 – $14

52W RANGE

$10
$16

AI Summary

Stalk
Buy NowMedium

AVO remains in a healthy Stage 2 advance following a corrective reset, supported by a robust Lockout Rally pattern that signals strong demand and short covering. The 9 EMA, 21 EMA, and 50 DMA have turned upward and consistently hold price, reinforcing a bullish medium-term posture. Despite overbought RSI levels, the active Lockout Rally override permits immediate participation on shallow pullbacks. Execution favors continuation participation into rising EMA support.

  • ↑Colabo acquisition expected to deliver ≥$25M cost synergies within 18 months
  • ↑Q2 avocado volumes rose 15% YoY despite price declines
  • ↓Q2 revenue fell 24% YoY to $290.9M with gross profit down 28%
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Mission Produce, Inc. (NASDAQ: AVO) is a leading supplier of avocados and other fresh produce, specializing in sourcing, marketing, and distribution. Positioned at the forefront of the avocado supply chain, Mission leverages its vertical integration across multiple growing regions, aiming to capitalize on rising consumer demand, particularly in the U.S. and international markets. The company is actively expanding its offerings, recently including prepared foods and diversifying its product portfolio, making it a significant player in the food industry.

Bull says

  • ↑Colabo acquisition expected to deliver ≥$25M cost synergies within 18 months
  • ↑Q2 avocado volumes rose 15% YoY despite price declines
  • ↑72% avocado household penetration supports long-term demand
  • ↑Q3 adjusted EBITDA guided at $28–32M, signaling margin recovery
  • ↑Insider buying and target hike to $16 reflect strong investor confidence
  • ↑$33M cash balance and vertical integration underpin supply resilience

Bear says

  • ↓Q2 revenue fell 24% YoY to $290.9M with gross profit down 28%
  • ↓Adjusted net income collapsed 91% YoY to $0.8M ($0.01/share)
  • ↓36% per-unit price drop driving material margin compression
  • ↓$10M annual tariff costs on imports add further expense pressure
  • ↓Colabo integration risks may disrupt operations and synergies
  • ↓Weak profitability metrics and high interest-rate sensitivity threaten earnings

Investment themes with AVO

Food Products↑ +1.00%

ADM · CTVA · KR

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 06-10-2026neutral

Transcript signals

Bull points

  • We delivered record second quarter revenue of $380.3 million, an increase of 28% versus the prior year period, and generated stronger than expected adjusted EBITDA, demonstrating the continued execution of our global commercial strategy to expand market access and the categories that we serve.
  • Our deep-grow relationships in Mexico, along with our global sourcing network, allowed us to be nimble, providing the flexibility to leverage other countries of origin as market conditions warranted.
  • The pricing environment remained favorable throughout the quarter, in fact, more so than we anticipated.

Bear points

  • Gross profit was $28.4 million in the second quarter compared to $31 million in the prior year period, primarily due to lower avocado per unit margins, which were a result of challenges in obtaining necessary Mexican fruit supply in the early part of the quarter to meet our customer commitments.
  • Adjusted net income for the quarter was $8.7 million, or 12 cents per diluted share, compared to $9.8 million, or 14 cents per diluted share last year. Adjusted EBITDA was $19.1 million, compared to $20.2 million last year, driven primarily by lower per unit gross margins on avocados sold.
  • Segment adjusted EBITDA was $16.8 million compared to $21.7 million in the same period last year, as a result of lower gross profit driven primarily by lower per unit gross margins on fruit sold, which was largely in line with our expectations.
Read full transcript analysis ›