Cal-Maine Foods (CALM) is facing a fresh set of challenges in 2026 as climbing feed costs begin to weigh on the company’s financial outlook.
StoneX analyst Ben Klieve has downgraded the stock to Hold from Buy, citing the growing pressure that higher feed expenses are expected to place on earnings.
Klieve also removed his $100 price target on the stock as part of the revised assessment, signaling reduced near-term confidence in the company’s valuation.
The downgrade comes even as egg prices appear to be finding a floor, offering some potential relief on the revenue side of the business.
Cal-Maine is the largest producer and distributor of fresh shell eggs in the United States, making it particularly sensitive to both feed input costs and egg market pricing dynamics.
Feed costs represent one of the most significant expense variables for egg producers, as corn and soybean meal prices directly affect the cost of raising laying hens at scale.
When feed costs rise sharply, margins can compress quickly, especially if egg prices do not move higher at the same pace to offset the added operational burden.
The apparent stabilization of egg prices, while a modestly positive signal, is not seen as sufficient to counteract the headwind that elevated feed costs now present for the company.
StoneX’s revised stance reflects a more cautious view on Cal-Maine’s near-term earnings trajectory, even if the longer-term fundamentals of the egg business remain intact.
Investors will likely be watching closely for any updates on feed cost trends and egg price movements in the coming quarters to reassess the stock’s direction.
Cal-Maine has navigated volatile commodity environments before, but the combination of softening egg prices and rising input costs creates a more difficult near-term backdrop for the company to manage.
The removal of the price target by Klieve underscores the degree of uncertainty now surrounding CALM’s earnings power in the months ahead.
