UPDATE - UBS Initiates Coverage on United Natural Foods (UNFI) with a Neutral; Growth Isn't The Challenge, Cash Flows Is
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Price: $48.04 +2.74%
Rating Summary:
11 Buy, 21 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 21 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS initiates coverage on United Natural Foods (Nasdaq: UNFI) with a Neutral rating. PT $50.
UBS analyst said, "We expect natural/organic food category sales to double over the next 10 years, which benefits UNFI as the leading wholesaler of natural/organic/specialty foods. Whole Foods is 36% of UNFI sales, with conventional grocery chains accounting for another 22% of sales. As these channels grow natural/organic sales, we expect UNFI to grow revenues by 12% per annum over the next 5 years."
"We estimate UNFI will need to start spending capex to increase capacity within the next 24 months. It also carries ~50 days of inventory (vs conventional food wholesalers at most half that rate) in an effort to provide the best assortment and highest fulfillment rates in order to maintain distribution contracts. Therefore, as it grows, it requires significant cash outflows."
To see more ratings on UNFI, Click Here
UBS analyst said, "We expect natural/organic food category sales to double over the next 10 years, which benefits UNFI as the leading wholesaler of natural/organic/specialty foods. Whole Foods is 36% of UNFI sales, with conventional grocery chains accounting for another 22% of sales. As these channels grow natural/organic sales, we expect UNFI to grow revenues by 12% per annum over the next 5 years."
"We estimate UNFI will need to start spending capex to increase capacity within the next 24 months. It also carries ~50 days of inventory (vs conventional food wholesalers at most half that rate) in an effort to provide the best assortment and highest fulfillment rates in order to maintain distribution contracts. Therefore, as it grows, it requires significant cash outflows."
To see more ratings on UNFI, Click Here
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