RBC Capital reiterated a Sector Perform rating on United Natural Foods (NASDAQ: UNFI), and raised the price target to $34.00 (from $33.00), following the company's 4Q earnings report. UNFI reported adjusted EPS of $0.70 on $2.21bn of revenue, ahead of the consensus estimates of $0.63 and 2.22bn, respectively. Management guided 2017 net sales to $9.43–9.60bn and GAAP EPS of $2.53–2.63.

Analyst William Kirk commented, "Considering the strong accretion that helped UNFI to beat the quarter, we consider FY17 EPS guidance to be a bit disappointing. Net sales guidance beat estimates, but we believe that was largely the function of poor modeling efforts. Until capacity utilization improves (likely through margin investment), we remain on the sidelines. We reiterate our Sector Perform rating and adjust our price target to $34 from $33."

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Shares of United Natural Foods closed at $41.16 yesterday.