UBS Maintains a 'Neutral' on United Natural Foods (UNFI); Investment Thesis: Balancing Growth and Cash Flows

September 12, 2012 11:18 AM EDT Send to a Friend
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Price: $63.06 -0.82%

Rating Summary:
    10 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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UBS maintains a 'Neutral' on United Natural Foods (NASDAQ: UNFI) price target of $55.00 (from $53.00).

Analyst, Jason DeRise, said, "UNFI guided that it would achieve FCF in the $30-50m range despite capex rising from $31m to $70-80m (UBSe $75m, 1.25% of sales). In addition to an estimated incremental $18m in net income we expect working capital to improve ($27m). UNFI expects inventory days to improve, which we estimate improves to 48 days from 50 (though there was minimal improvement in H2 12FY vs expectations). In addition, accounts receivable will likely be less of headwind. These offset some of the ramp up in capex, allowing FCF to be $29m."

FY13 EPS estimate lowered from $2.38 to $2.24 and FY14 from $2.64 to $2.61.

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 $55.24 yesterday.


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