Jefferies Cuts Price Target on Flowers Foods (FLO) Following 2Q Results

August 11, 2016 8:27 AM EDT
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Price: $19.61 -1.01%

Rating Summary:
    5 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 33 | New: 34
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Jefferies reiterated a Buy rating on Flowers Foods (NYSE: FLO), and cut the price target to $20.00 (from $23.00), following the company's 2Q earnings report. 2Q16 sales of $935M were $11M or 1% below consensus. SG&A expenses were lower than expected resulting in a slight beat relative to estimates at the EBIT level.

Analyst Akshay Jagdale commented, "2Q16 EPS was in line with consensus & better than feared. However, the company lowered 2H16 sales and EBIT estimates by 4% and 21%, respectively. The significant cut in 2H EBIT guidance reflects the company’s inability to reduce fixed costs in the short-term, which we believe is a transitory issue. News of a DOL inquiry is an incremental overhang but we continue to believe most of the bad news is priced into the stock. We reiterate our Buy rating."

For an analyst ratings summary and ratings history on Flowers Foods click here. For more ratings news on Flowers Foods click here.

Shares of Flowers Foods closed at $16.15 yesterday.

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