In a report released today, Timothy Ramey from Pivotal Research maintained a Buy rating on Flowers Foods (NYSE: FLO), with a price target of $24. The company’s shares opened today at $19.45.
Ramey commented:
“We are reducing estimates and our price target goes to $24, down from $26. Our 2018 estimate goes to $1.04 down from $1.15; our 2019 estimate goes to $1.13 down from $1.30. We have confidence that the company can improve its EBIT margin but from a lower base in 2018 on labor and input cost pressures. We believe the company will be aggressive in buying back shares or will complete a meaningful bolt-on acquisition in 2018 which would further leverage returns. Neither of these positive outcomes are discounted in company guidance. The dividend is 3.6% is attractive.”
According to TipRanks.com, Ramey is a 5-star analyst with an average return of 13.2% and a 69.1% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Post Holdings Inc, and Brown-Forman B.
Currently, the analyst consensus on Flowers Foods is a Moderate Buy with an average price target of $20.67.
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The company has a one-year high of $22.82 and a one-year low of $16.80. Currently, Flowers Foods has an average volume of 1.43M.
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Flowers Foods, Inc. engages in the manufacture and sale of bakery products. It operates through the Direct-Store-Delivery (DSD) and Warehouse Delivery segments. The DSD segment produces fresh breads, buns, rolls, tortillas, and cakes sold by a network of independent distributors to retail and foodservice customers.
