UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Flowers Foods on Better-Than-Expected Reports

In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Flowers Foods

, and raised its price target from $22.00 to $26.00. BMO Capital Markets noted, “FLO reported 4Q12 EPS of $0.28, $0.04 ahead of our expectation, owing to sales gains from the Hostess bankruptcy and a lower-than-expected tax rate. FLO remains in the lead position to acquire Hostess' fresh bakery assets, with a final decision expected after March 5. However, its acquisition of Sara Lee and Earthgrains brands in California has hit a snag with Grupo Bimbo filing a motion to suspend the transaction. FLO did not provide 2013 guidance but expects results to meet or exceed long-term goals, including 5%-10% sales growth, 11%-13% EBITDA margins, and double-digit earnings growth.” Flowers Foods closed on Thursday at $28.24.