UBS Cuts Price Target on Nomad Foods Limited (NOMD) to $13; Reiterates Buy

November 30, 2016 9:39 AM EST
Get Alerts NOMD Hot Sheet
Price: $10.28 --0%

Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 37 | New: 34
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UBS maintained a Buy rating on Nomad Foods Limited (NYSE: NOMD), and cut the price target to $13.00 (from $14.00), following the company's 3Q earnings report. On Tuesday's earnings call Nomad reiterated that it wanted to stabilize revenue trends; and to accelerate Findus synergies in 2017.

Analyst Steven Strycula commented, "Nomad's stock declined -6.5% on Tues despite a sequential sales improvement (-3.3% in 3Q16 vs. -3.8% in 2Q) and a +€0.02 EPS beat. The selloff, in our view, is attributable to a slower than expected revenue recovery outlook for 4Q16 and 1H17 vs. Street expectations due to transitory items (France destocking ahead of Findus sell-in, hake shortage in Italy, Sweden salmon biz). Uncertainty concerning Nomad's planned UK price increase creates additional near-term risk as the company finalizes 2017 trade programs with retailers. Though Nomad's revenue and margin catalysts now skew to mid-2017 (vs. early 2017), we believe the stock offers attractive risk/reward for value investors – we recommend buying the stock particularly on weakness."

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

Shares of Nomad Foods Ltd closed at $10.00 yesterday.

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