Truist Securities Reiterates Hold Rating on Flowers Foods (FLO)
Truist Securities analyst Bill Chappell reiterated a Hold rating and $23.00 price target on Flowers Foods (NYSE: FLO)
The analyst comments "We view the quarter as in line with expectations. Sales were below our expectations due the timing of exits from certain food service contracts which are, admittedly, difficult to predict. The core DSD business trends were similar to 1Q24. With the key summer season largely behind the company, there is greater confidence in the full year 2024 outlook. While the business is acting like a true consumer staple (slow growth, benign competitive environment, steady margins and cash flow), we continue to believe the company will need to make a meaningful M&A move to gain investors' notice. The current valuation for the shares is 16.8x our FY25 EPS, in-line with the 5- and 10-year historical range. We do not see anything on the horizon which will alter that valuation. Maintain Hold."
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Shares of Flowers Foods closed at $22.66 yesterday.