TreeHouse Foods Upgraded To Buy At Stifel

Christopher Growe of Stifel upgraded shares of

to Buy from Hold with a $90 price target on Wednesday. “The pullback in the shares since its third quarter earnings report last week has created an opportunity, in our view, for investors to buy TreeHouse at a discounted multiple,” Growe explained. The analyst adds that TreeHouse holds unique benefits that are not “fully appreciated” in the valuation, namely underlying growth in domestic and international packaged food, a benign input cost, synergy potential around acquisitions and margin growth made possible through international simplification efforts. Acquisitions will remain the “lifeblood of TreeHouse's future growth potential,” according to Growe who estimates the company could complete another $1 billion in acquisitions without using equity. Growe sees the company growing at above average rates through 2015. The analyst projects the company will realize an earnings per share of $4.20 in 2015, conforming to the company's guidance.