KeyBanc Upgrades Flowers Foods (FLO) to Overweight

KeyBanc upgraded Flowers Foods (NYSE: FLO) from Sector Weight to Overweight with a price target of $23. The change follows its Rehberg settlement.

Analyst Brett Andress said, "We see this event triggering a wave of settlements, which should sig. reduce FLO's cost overhang, and a closer look at "non-economic terms" reveals structural changes to the model. While we still view FY17 as muted (lingering legal, deflation, early Centennial benefits), we see a compelling entry point for patient investors as a case for $1.15+ in FY18 builds, driven by more benefit from Centennial (est. $0.15+ of LT savings), lower legal costs and potential reflation. Our $23 PT represents 20.0x our FY18E vs. FLO's hist. range of 17-23x."

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

Shares of Flowers Foods closed at $19.01 yesterday.

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