United Natural Foods (UNFI): Valuation Gap With WFM Likely To Close Near Term - Piper Jaffray

Piper Jaffray analyst, Sean Naughton, reiterated his Neutral rating on shares of United Natural Foods (NASDAQ: UNFI) and cut estimates due to the recent acquisition and persistent deflation that has been outlined by retailers and food distributors. Sysco talked about deflation extending for the remainder of 2016 and the impact from deflation is lower gross profit dollars per case. The analyst believes UNFI will have the same issue, specifically in protein/perishable categories, where there is little trade spend to help support topline declines. Overall, he is maintaining his Neutral rating, and believes the valuation gap between UNFI and WFM will close in the near-term. The price target drops to $40 from $45.

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 $50.06 yesterday.

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