UPDATE: Stifel Nicolaus Initiates Annie's with Hold; Valuation Full
Stifel Nicolaus initiates its coverage on Annie's (NYSE: BNNY) with a Hold rating as it believes the company's robust growth profile is sufficiently accounted for in its current valuation.
Stifel Nicolaus comments, "Our confidence in the robust top-line growth opportunity at Annie's is heightened by three key growth levers available to the company of increasing household penetration (from current levels of approximately 6%), expanding retail distribution (low current levels other than mac & cheese), and developing new product offerings (new frozen pizza line in 95% of Whole Foods) all of which are vital to generating the expected growth rate well above natural and organic industry-wide expectations. …Our Hold rating reflects our view that Annie's valuation appropriately reflects the significant growth and potential takeout opportunity in place at the company."
BNNY closed at $37.02 on Friday.
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