UPDATE: Canaccord Genuity Raises Target on United Natural Foods to $50
Canaccord Genuity raises its price target to $50 on United Natural Foods (NASDAQ: UNFI) on the company's robust natural/organic category growth, which coupled with its leading distributing position, should drive strength in sales and earnings growth.
Canaccord Genuity notes, "NFI reported Q2 EPS of $0.45, a penny ahead of consensus on strong revenue growth and constant operating margins. All channels posted robust growth, but sales to Whole Foods and supermarket wins continue to drive the double-digit internal gains. Mix shift is apparent in the gross margin. The sales momentum, improving margins following on-boarding Safeway distribution, and cost controls further our confidence in the accelerated EPS growth trajectory."
UNFI closed at $44.24 a share yesterday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.