Pivotal Research analyst Ajay Jain reiterated a Sell rating on SpartanNash Co (SPTN) today and set a price target of $10. The company’s shares opened today at $11.92, close to its 52-week low of $11.12.
Jain wrote:
“We are fine tuning our price target for SPTN to $10 (from $12) based on a target multiple of 6.0x for CY19 (SPTN currently trades at a forward multiple of 6.5x). After further review of SPTN’s latest results and based on current sector trading multiples, our FY19 and FY20 estimates for SPTN are more consistent with a $10 price target. SPTN has had eight consecutive quarters with disappointing earnings and weak guidance commentary. While a lot of is riding on the Project One cost reduction plan, we don’t expect any substantive impact until FY20 at the earliest. Relative to the current FY19 guidance range of $190-$205 million and adj. EPS of $1.20-$1.50, our below consensus estimates remain unchanged at $182 million and $1.16, respectively. SPTN still faces a wide range of operational challenges and an increasingly price competitive retail environment.”
According to TipRanks.com, Jain is a 4-star analyst with an average return of 13.5% and a 58.9% success rate. Jain covers the Services sector, focusing on stocks such as Walgreens Boots Alliance, Performance Food Group, and US Food Holdings Corp.
Currently, the analyst consensus on SpartanNash Co is a Moderate Sell with an average price target of $12.
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Based on SpartanNash Co’s latest earnings release for the quarter ending April 30, the company reported a quarterly net profit of $7.29 million. In comparison, last year the company had a net profit of $12.1 million.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2019, Shan Atkins, a Director at SPTN sold 4,676 shares for a total of $74,255.
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SpartanNash Co. engages in the distribution of grocery products to military commissaries in the U.S. It operates through the following segments: Military, Food Distribution, and Retail. The Military segment sells and distributes grocery products primarily to U.S. military commissaries and exchanges.
