United Natural Foods (UNFI): Valuation Gap With WFM Likely To Close Near Term - Piper Jaffray

August 16, 2016 7:56 AM EDT
Get Alerts UNFI Hot Sheet
Price: $42.09 +1.25%

Rating Summary:
    5 Buy, 17 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 7
Trade UNFI Now!
Join SI Premium – FREE

Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

Piper Jaffray analyst, Sean Naughton, reiterated his Neutral rating on shares of United Natural Foods (NASDAQ: UNFI) and cut estimates due to the recent acquisition and persistent deflation that has been outlined by retailers and food distributors. Sysco talked about deflation extending for the remainder of 2016 and the impact from deflation is lower gross profit dollars per case. The analyst believes UNFI will have the same issue, specifically in protein/perishable categories, where there is little trade spend to help support topline declines. Overall, he is maintaining his Neutral rating, and believes the valuation gap between UNFI and WFM will close in the near-term. The price target drops to $40 from $45.

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

Shares of United Natural Foods closed at $50.06 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change, Short Sales

Related Entities

Piper Jaffray, Definitive Agreement

Add Your Comment