UPDATE: Piper Sandler Downgrades B&G Foods (BGS) to Neutral

March 22, 2021 4:58 AM EDT
Get Alerts BGS Hot Sheet
Price: $29.92 -0.7%

Rating Summary:
    4 Buy, 12 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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(Updated - March 22, 2021 5:20 AM EDT)

Piper Sandler analyst Michael Lavery downgraded B&G Foods (NYSE: BGS) from Overweight to Neutral with a price target of $31.00.

The analyst comments "We do not see upside to current valuation, and we believe commodity price inflation could drive cost headwinds in 2H21 and 2022. Commodity prices are surging broadly, and we estimate B&G has exposure to rising costs through key inputs like soybean oil, corn, wheat, and steel. We estimate hedging and pricing could help offset potential EPS headwinds, but we estimate B&G could still face up to 15-25% risk to EPS in 2021 and 2022 if current prices hold. The sustainability of elevated prices is not yet clear, so we maintain our 2021E EPS of $2.25, our 2022E EPS of $2.49, and our $31 PT. Downgrade to Neutral."

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 $33.06 yesterday.

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