UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Pinnacle Foods Following 2Q13 EPS Report

In a report published Thursday, BMO Capital Markets analyst Kenneth B. Zaslow reiterated an Outperform rating on

, and raised the price target from $28.00 to $30.00. In the report, BMO Capital Markets noted, “PF remains a conservative investment vehicle that balances consistent EPS growth, a high dividend yield, and an ability to exceed expectations through further acquisitions. First, PF should continue to generate sales growth at least in line with its categories with ongoing opportunities to outperform in selected categories through innovation and increased consumer/trade spending. Second, PF should continue to generate margin expansion reflecting aggressive cost cutting efforts, efficiencies, and moderating commodity costs. Third, we estimate that Wish-Bone should contribute at least $0.08 to EPS in 2014, while there may be upside from top-line opportunities from co-marketing and greater synergies. To be fair, legacy interest expense (ex Wish-Bone debt) should increase modestly relative to expectations (PF will not realize a 25 basis point reduction in interest rate from a lower leverage ratio). Fourth, PF likely will continue to proactively seek strategic acquisitions given its strong cash flow.” Pinnacle Foods closed on Wednesday at $26.34.