UPDATE: Goldman Sachs Initiates Pinnacle Foods with Neutral on Compelling Cash Flow, Fair Value
In a report published Tuesday, Goldman Sachs analyst Jason English initiated coverage on Pinnacle Foods (NYSE: PF) with a Neutral rating and $25.00 price target.
In the report, English noted, “Cash flow dynamics for the company are healthy, especially in light of its NOL tax shelter. Its 3% dividend yield is also attractive and we appreciate the earnings visibility afforded by the current input cost environment (PF's P&L has above-average sensitivity to COGS volatility). But these strengths are balanced by a relatively disadvantaged portfolio and valuation that appears fair following the successful IPO and subsequent rally. We can see a path to further outperformance, but that is largely predicated on accretive M&A, the timing and potential benefit of which can not be predicted.”
Pinnacle Foods closed on Monday at $23.93.
Latest Ratings for PF
|Aug 2014||Stephens & Co.||Upgrades||Equalweight||Overweight|
|Aug 2014||Deutsche Bank||Maintains||Hold|
|Jun 2014||RBC Capital||Upgrades||Sector Perform||Outperform|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.