Nomad Foods (NOMD) Stock Forecast & Price Target

Nomad Foods Ltd is experiencing improved category volume growth and low-single-digit sales growth as the industry recovers, indicating positive momentum in demand for its frozen food products. The company's brand portfolio has benefited from recent investments in previously under-resourced assets, positioning it more favorably than at the time of acquisition. Furthermore, its leadership in key markets, emphasis on health-oriented categories, and the overall recovery of economic conditions in Europe contribute to a promising outlook for the company's financial performance.

Nomad Foods Ltd is facing a challenging financial outlook, as the company has projected flat to a 2.0% decline in organic revenue for the year, with the fourth quarter likely reflecting a similar trend in growth. The reported 3Q25 revenue declined by 2.2%, primarily driven by adverse weather conditions and significant declines in the UK market, indicating a broader struggle within its primary geographic area. Additionally, the gross margin decreased substantially, down 230 basis points to 27.3%, due to elevated cost inflation outpacing pricing adjustments, which is reflected in an adjusted EBITDA that fell short of expectations by €2.2 million.