Pinnacle Foods (PF) Rises On Activist Position, Stephens Says Company Could Fetch $85/Share in a Sale

Shares of Pinnacle Foods (NYSE: PF) rose almost 10% or $4.00 to a high of $63.00 ahead of the closing bell on Friday following news that Dan Loeb of activist fund Third Point took a position in the company. Shares remain elevated this morning around $62.00 and analyst Farha Aslam of Stephens investment research outlet believes Pinnacle could fetch around $85.00 per share if it were sold.

The analyst reminded clients that the company has been considered an acquisition target and further comments that it would be a strategic fit within ConAgra Brands (NYSE: CAG) noting Pinnacle's portfolio of iconic frozen brands. Aslam's also wrote that Pinnacle could roll-in nicely at Tyson Foods (NYSE: TSN) given the size of Tyson's frozen business and potential for further business synergies.

Aslam keeps a Overweight rating on the stock and a $65.00 while noting that a potential sale could peg the valuation at $85.00 per share

The current target of $65.00 is rough 5% above Friday's after hours closing price of $61.65.

StreetInsider Premium first published a variation of this article at 7:55AM ET. Try StreetInsider Premium for two weeks free here.

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