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Lakeland Industries target cut to $14.50 due to margin and litigation risks despite margin gains.

Analyst Insights
12 Sep 2026
Seeking Alpha
View Source
Bearish
Lakeland Industries target cut to $14.50 due to margin and litigation risks despite margin gains.

Lakeland Industries remains a Buy, but the price target was lowered from $18.00 to $14.50 due to revised margin expectations and increased litigation risk from new PFAS multidistrict lawsuits. While gross margin improved to 37%, only half of that is structural, with a true margin of 34% after excluding a one-time tariff refund. Operating expenses rose to 32% of sales, pushing meaningful operating income further out to at least fiscal 2029. The increased legal risk has raised expected costs and impacted the valuation, prompting a more cautious outlook despite the company's potential upside.

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