UPDATE: Piper Sandler Downgrades B&G Foods (BGS) to Neutral
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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."
Shares of B&G Foods closed at $33.06 yesterday.
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