UPDATE: Bank of America Initiates Pinnacle Foods with Buy on Solid Earnings, Cash Flow Visibility

In a report published Tuesday, Bank of America analyst Bryan D. Spillane initiated coverage on Pinnacle Foods

with a Buy rating and $27.00 price target. In the report, Spillane noted, “We are initiating coverage of Pinnacle Foods (PF) with a Buy rating and a $27 PO. In our view, PF is in the midst of a productivity cycle that should enable it to fund sales growth while dropping enough to the bottom line to support operating profit and dividend growth. Management has also made organizational and balance sheet improvements that position PF to potentially participate in M&A. This has been a value creating strategy for packaged food companies.” Pinnacle Foods closed on Monday at $23.93.