Piper Sandler Upgrades B&G Foods (BGS) to Neutral

Piper Sandler analyst Michael Lavery upgraded B&G Foods (NYSE: BGS) from Underweight to Neutral with a price target of $9.00 (from $8.00).

The analyst comments "BGS is considering the sale of its Frozen & Vegetables segment, which is close to ~20% of its revenues and ~10% of its EBITDA. The segment has declining sales and low margins, so any proceeds from a sale are at modest multiples, but there does not appear to be risk to the dividend from a divestiture at a price within reasonable likely expectations. We would also expect incremental improvement to its net debt to EBITDA (assuming any proceeds are used to pay down debt). We maintain our 2024E EPS of $0.80, our 2025E EPS of $0.87 and our $9 price target (~10x 2025E EPS), but we upgrade to Neutral as we believe the recent sell-off in the shares now mitigates downside risk."

For an analyst ratings summary and ratings history on B&G Foods click here. For more ratings news on B&G Foods click here.

Shares of B&G Foods closed at $8.54 yesterday.

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