B&G Foods (BGS – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Robert Moskow from TD Cowen remains neutral on the stock and has a $7.00 price target.
Robert Moskow has given his Sell rating to B&G Foods due to a combination of factors. His rating is primarily influenced by B&G Foods’ lowering of their sales guidance for the year once again after missing 3Q, despite their EBITDA being in line and guidance unchanged. In addition to this, the company’s decision to sell the Green Giant canned business and the management’s emphasis on exploring the divestiture of 10-15% of their portfolio to improve a highly leveraged balance sheet also contributed to his rating.
Moreover, the organic sales of the company declined by 3%, which was driven by a price/mix of -0.2% and a volume of -2.5%. The management attributed this decline to Crisco price drops due to lower commodity soybean oil and weak performance in Frozen. Furthermore, the company’s lowering of full-year sales guidance to $2.05B to $2.07B and EBITDA guidance of $310M to $330M also played a role in Moskow’s rating. The full-year guidance implies a net sales decline of 7.6%, an EBITDA decline of 5.2%, and an EPS decline of 13%. The sale of Green Giant canned vegetables also impacts the company’s working capital and it’s intended to pay down debt.
According to TipRanks, Moskow is a 4-star analyst with an average return of 5.3% and a 51.27% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as B&G Foods, Kellanova, and Vital Farms.
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B&G Foods (BGS) Company Description:
B&G Foods, Inc.is a holding company, which engages in the manufacture, sale, and distribution of shelf-stable frozen food, and household products in the U.S., Canada, and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, and wine vinegar. Its brands include Back to Nature, Bear Creek, Cream of Wheat, Green Giant, Mrs. Dash, and Ortega. The company was founded in 1889 and is headquartered in Parsippany, NJ.
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