In a report released yesterday, Rupesh Parikh from Oppenheimer maintained a Hold rating on Smart & Final (SFS). The company’s shares closed yesterday at $4.95, close to its 52-week low of $4.45.
Parikh wrote:
“Earlier this evening, SFS reported a fairly mixed quarter. Adjusted EBITDA of $62.3M was essentially in line with a Street forecast of $62.4M. However, comps fell short of forecasts with an increase of 0.6% below Street expectations of +1.3%. Management commentary suggests deflationary pressures drove the top-line shortfall with food prices down 0.7% YoY. SFS also narrowed full-year comp and adjusted EBITDA guidance to the lower end of the prior full-year ranges. Even with the guidance adjustment, commentary seemed fairly upbeat to us on QTD trends. We remain on the sidelines due to a still challenging backdrop for SFS given deflationary pressures and the potential for muted profit growth to continue.”
According to TipRanks.com, Parikh is a top 100 analyst with an average return of 16.8% and a 66.4% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
The word on The Street in general, suggests a Hold analyst consensus rating for Smart & Final with a $6.50 average price target.
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Based on Smart & Final’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $6.6 million. In comparison, last year the company had a net profit of $5.11 million.
Based on the recent corporate insider activity of 49 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 SFS in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Smart & Final Stores, Inc. is a value-oriented food and everyday staples retailer that serves household and business customers. The company operates through following segments: Smart & Final and Cash & Carry. The Smart and Final segment focuses on both household and business customers.
