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Imperial Capital Starts Boulder Brands (BDBD) at Outperform; Gluten-Free Leader

June 7, 2013 8:53 AM EDT Send to a Friend
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Price: $13.16 -0.9%

Rating Summary:
    4 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 9 | New: 0
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Imperial Capital initiates coverage on Boulder Brands (NASDAQ: BDBD) with a Outperform and $16 pricing target highlighting the company's transformation into a leading natural foods manufacturer with a significant leadership position in the gluten-free segment.

Analyst Mitchell B. Pinheiro comments: "Through the acquisition of Glutino and Udi’s, BDBD has transformed into a leading natural foods manufacturer with a significant leadership position in the gluten-free segment. BDBD's legacy Smart Balance brand is being managed to provide stable cash flow to support the investment behind the natural segment and we anticipate less earnings risk from this segment, particularly with the milk business being deemphasized. Driven by distribution gains from new and existing retailers, innovative new products and continued consumer demand, we believe the natural segment can increase revenue at a mid-teen rate, at a minimum, over the next several years. We forecast a three-year revenue of 10% and EPS CAGR of 33%, placing the company among the fastest growing in the packaged food category. With an improved growth profile and reasonable street expectations, we believe the stock's current valuation reflects an attractive entry point into the best play on gluten-free and more broadly, the health and wellness category."

For an analyst ratings summary and ratings history on Boulder Brands click here. For more ratings news on Boulder Brands click here.

Shares of Boulder Brands closed at $10.26 yesterday.




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