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.
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