Analyst Note| Seth Goldstein, CFA |
Balchem generated solid first-quarter results as segment earnings before taxes were up 22% year on year. The growth was driven largely by higher profits in the human nutrition and health (HNH) segment, partially offset by lower profits in the animal nutrition and health (ANH) and specialty products segments. In light of the first-quarter results, we have slightly increased our near-term outlook in the HNN segment to account for higher revenue growth than we had previously forecast. Our long-term outlook is unchanged. Having updated our model to reflect these changes, we raise our Balchem fair value estimate to $97 per share from $93. Our narrow-moat rating is unchanged.