Cantor Fitzgerald Upgrades SpartanNash Company (SPTN) to Buy

Cantor Fitzgerald upgraded SpartanNash Company (NASDAQ: SPTN) from Hold to Buy with a price target of $25.00 (from $20.00).

Analyst Ajay Jain said, "Spartan is executing at a high level across its military, distribution, and retail segments following its recent acquisition of Nash Finch. Based on quality of 1Q results and strong guidance for 2Q, we think the 2014 EPS guidance of $1.65-$1.75 and EBITDA guidance of $230-$239 million is potentially conservative."

"Previously, the main factors that had held us back from a more constructive view on the stock were: i) the negative same-store sales trajectory (which began in FY:10); ii) valuation (the lack of a meaningful discount to the peer group; and iii) potential for negative synergies and integration challenges in relation to Nash Finch. While it’s still premature to view the Nash Finch acquisition as a complete success, we think Spartan has reached a meaningful inflection point in the retail segment with sustained comp store sales improvement over the past three consecutive quarters," he added.

For an analyst ratings summary and ratings history on SpartanNash Company click here. For more ratings news on SpartanNash Company click here.

Shares of SpartanNash Company closed at $21.69 yesterday.

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