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What Do Analysts Recommend for Pinnacle Foods?

Sue Miller

Will Acquisition Continue Benefitting Pinnacle Foods in 1Q16?

(Continued from Prior Part)

Consensus rating for Pinnacle Foods

As of April 22, 2016, Pinnacle Foods (PF) was trading at $44.03. In this part, we’ll see what Wall Street analysts recommend for Pinnacle before the earnings release. We’ll also see the assigned price target for Pinnacle over the next 12 months. The results show that 56% of analysts rate Pinnacle Foods a “buy” and ~44% rate it a “hold.” None of them rate it a “sell.”

Analysts’ target prices for Pinnacle Foods

The average broker target price for Pinnacle is $48.93. However, this represents a rise of 10% from the closing price of $44.03 on April 22, 2016. Pinnacle’ peers like Treehouse Foods (THS), WhiteWave Foods (WWAV), and Lancaster Colony (LANC) have average broker target prices of $96.5, $46.36, and $110.67, respectively. These figures imply returns of ~10%, -13%, and -0.7%, respectively, in the next 12 months. The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 1.3% of its portfolio in Pinnacle.

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Recommendations for Pinnacle Foods

RBC Capital Markets, Consumer Edge Research, and Stephens gave Pinnacle Foods the highest target price of $52. This represents a 15% rise compared to the closing price on April 22. All three of them rate the stock a “strong buy.” The second-highest target price for Pinnacle Foods for the next 12 months is $50. This is 12% higher than the current trading price assigned by BMO Capital Markets, CL King & Associates, Credit Suisse, and Buckingham Research Group. All of them rate the stock a “strong buy.” Barclays also rates the stock a “strong buy” with expectations for it to rise by 10% in the next 12 months.

D.A. Davidson & Co. rates Pinnacle Foods a “hold.” It assigned Pinnacle Foods the lowest target price of $47. This is 6% higher than the closing price on April 22. Pinnacle Foods also received a “hold” rating from Stifel and Morningstar. Neither of them provided a target price for the stock.

Browse this series on Market Realist: