BMO Capital analyst Kelly Bania maintains $United Natural Foods (UNFI.US)$ with a hold rating, and adjusts the target price from $12 to $23.
According to TipRanks data, the analyst has a success rate of 66.0% and a total average return of 5.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $United Natural Foods (UNFI.US)$'s main analysts recently are as follows:
United Natural Foods reported Q4 earnings that surpassed expectations along with a FY25 guidance that met projections, despite a previous inclination among investors towards a bearish stance. The company experienced a shift to positive wholesale volumes towards the quarter's end, and has presented a 3-year forecast that anticipates margin expansion despite stable sales. This suggests that the cyclical challenges faced in the past are likely to diminish. Additionally, there is potential for further benefits stemming from a rise in vendor promotions or advantageous procurement possibilities.
United Natural Foods is demonstrating progress in its turnaround efforts, even amid challenging macroeconomic conditions. Although growth in food-at-home sales has been moderate, the company has observed encouraging signs such as a resurgence in volume growth towards the conclusion of Q4. The long-term forecasts appear to be attainable, which may provide a degree of stability to the stock's valuation in the short term.
United Natural Foods recently reported Q4 EBITDA that exceeded forecasts, positioning FY24 EBITDA at the upper range of the company's guidance. The organization's outlook for FY25 suggests steady to slight growth, providing reassurance to stakeholders. Additionally, the company has outlined a long-term objective for a high single-digit annual EBITDA increase. Nevertheless, anticipated flat sales in the upcoming years may curtail the potential for valuation growth.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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