UPDATE: Jefferies Raises PT on TreeHouse Foods Following Acquisition Announcement

In a report published on Monday, Jefferies analyst Thilo Wrede raised the price target on TreeHouse Foods THS from $64.00 to $65.00 and maintained a Hold rating.

In the report, Jefferies stated, "THS' next acquisition is smaller than we expected but nicely accretive. Despite more bullish recent rhetoric from management on acquisitions, THS announced a $35 million deal today, which is on the smaller side for the company. We assume that THS is paying about 4.5-5.5x CY14 EBITDA for Cains Foods, a maker of private label and branded mayonnaise and salad dressings. Given the low price and low cost financing, Cains' $80 million revenue addition is expected to be about 5 cents accretive in FY14."

TreeHouse Foods closed Friday at $65.14.