Upside in Flowers from Hostess Asset Purchases 'Uncertain, Unquantifiable, Well Down the Road' - DA Davidson
DA Davidson's Tim Ramey believes potential upside for Flowers Foods related to speculation the company could buy assets from Hostess is "uncertain, unquantifiable, and, if possible at all, well down the road."
Ramey's comments follow a 15+% gain in shares of Flowers over the last week amid news of Hostess closing its doors due to labor issues.
The DA Davidson analyst said any EPS upside for Flowers related to the buying of Hostess assets would not be seen for at least two years after the process began.
Ramey has an Underperform rating and $14 price target on shares of Flowers Foods.
Latest Ratings for FLO
|Jan 2017||Wunderlich||Initiates Coverage On||Buy|
|Dec 2016||KeyBanc||Upgrades||Sector Weight||Overweight|
|Oct 2016||DA Davidson||Initiates Coverage on||Neutral|
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