Jefferies Raises Price Target on United Natural Foods (UNFI) Following EPS Beat
Jefferies reiterated a Hold rating on United Natural Foods (NASDAQ: UNFI), and raised the price target to $42.00 (from $34.00), following the company's 3Q earnings report. UNFI reported adjusted EPS of $0.76, ahead of the consensus estimate of $0.66. Adjusted EPS Guidance for F2016 was increased to $2.47-$2.53 from $2.34-$2.44 (cons. $2.38).
Analyst Mark Wiltamuth commented, "UNFI reported an EPS upside surprise despite cont'd weak sales trends given better-than-expected margins (lumpy vendor promos better QoQ, less F/X drag, expense control, lower fuel costs). While the better margin performance and a guidance boost (driven by M&A) should buoy shares after the sharp guidance reduction last quarter, sales trends at lead customer WFM continue to struggle, and organic sales remain soft. Maintain Hold rating."
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Shares of United Natural Foods closed at $38.83 yesterday.