TreeHouse Foods (THS) to Benefit from Growth of U.S. Private Label Foods - Analyst

Wells Fargo resumed coverage on TreeHouse Foods (NYSE: THS) with an Outperform and a price target of $60.00. Analysts think TreeHouse Foods offers investors strong exposure to the secular growth of U.S. private label food.

“We forecast longterm outperformance resulting from the emergence of new distribution within alternate channels (drug and dollar) and a heightened urgency for differentiation via store brands within traditional grocery,” said analyst John Baumgartner.

Wells attributes TreeHouse underperformance to operating volatility, isolated category weakness, and an absence of significant M&A.

“We view current valuation as an opportunistic entry point,” said Baumgartner. He says twelve-month catalysts include the Q4 2012 launch of single-serve coffee, revenue synergies from past acquisitions, and value-conscious consumers.

For an analyst ratings summary and ratings history on TreeHouse Foods click here. For more ratings news on TreeHouse Foods click here.

Shares of TreeHouse Foods closed at $52.99 yesterday.

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