UPDATE: Imperial Capital Reiterates Outperform Rating, Raises PT on WhiteWave Foods Co. on 4Q14 Earnings Update

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In a report published Wednesday, Imperial Capital analyst Mitchell B. Pinheiro reiterated an Outperform rating on
WhiteWave Foods Co.
WWAV
, and raised the price target from $40.00 to $46.00. In the report, Imperial Capital noted, "We are maintaining our Outperform rating on shares of The WhiteWave Foods Company (WWAV) and raising our one-year price target to $46 from $40, roughly 13% above the recent share price. Recent 4Q14 results (announced on 2/12/15) continue to demonstrate strong top line trends with 10% organic growth and 34% growth including acquisitions (Earthbound and So Delicious). Excluding foreign currency headwinds, we expect WWAV to generate double-digit revenue growth and near 20% operating profit growth in 2015. We expect WWAV to continue to expand distribution, increase household penetration, and extend into new categories in both the U.S. and Europe. Incremental growth is expected to come from acquisitions and its joint venture in China. WWAV's current 18.1x multiple on our 2015 EBITDA estimate is evidence of the strong enthusiasm for the WWAV story and we believe it appropriately reflects the above-average revenue and earnings growth outlook, acquisition value, and, to some extent, the scarcity value premium for large, scalable brands and companies in the natural and organic sector. We expect the stock will grow generally consistent with earnings (3-year EPS CAGR of 13%) as we believe the valuation multiple expansion is unlikely from here. WWWAV shares offer attractive exposure to the health and wellness segment and should be considered a core holding in this segment, in our view." WhiteWave Foods Co. closed on Tuesday at $40.68.
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Posted In: Analyst ColorPrice TargetAnalyst Ratingsimperial capitalMitchell B. Pinheiro
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