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UPDATE: Goldman Sachs Initiates Pinnacle Foods with Neutral on Compelling Cash Flow, Fair Value

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In a report published Tuesday, Goldman Sachs analyst Jason English initiated coverage on Pinnacle Foods (NYSE: PF) with a Neutral rating and $25.00 price target.

In the report, English noted, “Cash flow dynamics for the company are healthy, especially in light of its NOL tax shelter. Its 3% dividend yield is also attractive and we appreciate the earnings visibility afforded by the current input cost environment (PF's P&L has above-average sensitivity to COGS volatility). But these strengths are balanced by a relatively disadvantaged portfolio and valuation that appears fair following the successful IPO and subsequent rally. We can see a path to further outperformance, but that is largely predicated on accretive M&A, the timing and potential benefit of which can not be predicted.”

Pinnacle Foods closed on Monday at $23.93.

Latest Ratings for PF

DateFirmActionFromTo
Feb 2017Deutsche BankInitiates Coverage OnBuy
Jan 2017William BlairInitiates Coverage OnOutperform
Jan 2017PiperJaffrayInitiates Coverage OnOverweight

View More Analyst Ratings for PF
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Initiation Analyst Ratings

 

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