Jefferies Raises Price Target on United Natural Foods (UNFI) Following EPS Beat

Jefferies reiterated a Hold rating on United Natural Foods (NASDAQ: UNFI), and raised the price target to $42.00 (from $34.00), following the company's 3Q earnings report. UNFI reported adjusted EPS of $0.76, ahead of the consensus estimate of $0.66. Adjusted EPS Guidance for F2016 was increased to $2.47-$2.53 from $2.34-$2.44 (cons. $2.38).

Analyst Mark Wiltamuth commented, "UNFI reported an EPS upside surprise despite cont'd weak sales trends given better-than-expected margins (lumpy vendor promos better QoQ, less F/X drag, expense control, lower fuel costs). While the better margin performance and a guidance boost (driven by M&A) should buoy shares after the sharp guidance reduction last quarter, sales trends at lead customer WFM continue to struggle, and organic sales remain soft. Maintain Hold rating."

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 $38.83 yesterday.

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