In a report released today, Akshay Jagdale from Jefferies reiterated a Buy rating on Pinnacle Foods (NYSE: PF), with a price target of $72. The company’s shares closed yesterday at $62.99.
Jagdale noted:
“1Q18 results were largely in line and 2018 guidance was reaffirmed. We are encouraged by the acceleration in top-line growth, which is supportive of our BSM thesis. Though gross margins missed expectations, we view the issues driving the weakness as transitory and expect gross margin to grow y/y starting in 2Q18. We reiterate our Buy rating on PF, which factors robust product innovation pipeline, significant M&A optionality and improving margin prospects.”
According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 4.7% and a 51.0% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Lamb Weston Holdings, McCormick & Company, and J & J Snack Foods.
Currently, the analyst consensus on Pinnacle Foods is Strong Buy and the average price target is $65, representing a 3.2% upside.
In a report issued on April 25, Credit Suisse also maintained a Buy rating on the stock with a $68 price target.
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Based on Pinnacle Foods’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $56.91 million. In comparison, last year the company had a net profit of $22.93 million.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PF in relation to earlier this year.
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Pinnacle Foods, Inc. engages in the provision of manufacturing, marketing, and distribution of branded food products in North America. It operates through the following segments: Frozen, Grocery, Boulder, and Specialty. The Frozen segment includes Hungry-Man frozen entrées; Van de Kamp’s and Mrs.
