UBS Reiterates Buy on Nomad Foods Limited (NOMD) Following 2Q

August 26, 2016 8:47 AM EDT
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Price: $12.62 -0.32%

Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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UBS reiterated a Buy rating on Nomad Foods Limited (NYSE: NOMD), and raised the price target to $14.00 (from $13.00), as shares show recent strength following solid 2Q results.

Analyst Steven Strycula commented, "Nomad's stock rallied on Thurs following better 2Q sales & EPS results, but we still see more room for shares to run as the Company's turnaround is early-staged. Importantly, the new CEO's plan shows evidence of success with like-for-like sales trends improving to -3.8% in 2Q from -6.1% in 1Q. We model sales trends to improve further through year-end and expect Nomad shares to trade/rerate higher. With one month left in 3Q (Sept-end), Nomad has good visibility into 3Q trends and is optimistic that smarter trade spend (revenue mgmt), new ad campaigns (1st in 5yrs), and fresh product packaging can repair key retailer relationships and can feed positive retail shelf space gains for Nomad in 2017. Further, we see upside to Nomad's FY16 €80m FCF guide (€200m FCF -120m in ex. items) based on lower YTD Capex and conservative synergy est of €9m."

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 $10.70 yesterday.

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