Jefferies analyst Robert Dickerson has reiterated their neutral stance on BGS stock, giving a Hold rating on May 1.
Robert Dickerson has given his Hold rating due to a combination of factors affecting B&G Foods’s performance and outlook. The main concern arises from the company’s Green Giant frozen food line, which continues to experience a year-over-year volume decline, despite showing some sequential improvement from the previous quarter. Although there have been positive developments in other product segments such as Crisco, Cream of Wheat, and Spice Islands, the overall sales forecast remains on a low single-digit percentage decline. Moreover, there are lingering questions around the possibility of further brand divestitures and the potential for margin recovery in the near term, all of which contribute to a cautious outlook on the stock.
Furthermore, while there are signs of gradual volume improvements, the overall distribution channel’s performance has not shown significant recovery from declining velocities. The risk associated with softness in the foodservice sector adds another layer of uncertainty for B&G Foods. These factors combined lead to Dickerson’s reiteration of a Hold rating, reflecting a stance that balances the observed improvements against the risks and challenges that could affect the company’s future performance.
In another report released on May 1, RBC Capital also maintained a Hold rating on the stock with a $11.00 price target.
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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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