United Natural Foods price target lowered to $26 at UBS on cyber attack

United Natural Foods (NYSE:UNFI) received a price target reduction Wednesday from UBS, which lowered its target to $26.00 from $30.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock is currently trading at relatively low revenue multiples, with analyst targets ranging from $25 to $33.

The price target adjustment follows United Natural Foods’ third-quarter results, which showed the company beating both top and bottom line expectations. The company’s Natural segment continued to drive revenue growth, with total revenue reaching $31.7 billion, while cost-cutting and lean initiatives bolstered adjusted EBITDA growth of approximately 21% year-over-year, its strongest pace of the year. InvestingPro analysis reveals 12+ additional insights about UNFI’s performance and outlook.

UBS noted that UNFI made significant progress toward its longer-term objectives during the quarter, including meaningful debt reduction. The company now expects to reach its leverage target of approximately 2.5x a year ahead of schedule. The company maintains a current ratio of 1.45, indicating sufficient liquidity to meet short-term obligations.

Despite these positive developments, a recently announced cyber attack has overshadowed the company’s financial results. The security breach has introduced "considerable uncertainty" regarding both customer retention and the company’s longer-term earnings outlook.

The cyber attack’s potential impact on United Natural Foods’ business over the next few quarters was cited as a key factor in UBS’s decision to reduce its price target while maintaining its Neutral stance on the stock.

In other recent news, United Natural Foods reported its fiscal third-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $0.44 compared to the forecasted $0.21. Revenue also exceeded projections, reaching $8.1 billion against the anticipated $7.78 billion, marking a 7.5% year-over-year increase. Despite these positive results, Jefferies analysts have lowered their price target for United Natural Foods from $28.00 to $26.00, maintaining a Hold rating due to a recent systems disruption that has created near-term uncertainty. The disruption has not been factored into the fiscal 2025 guidance, prompting Jefferies to lower their fourth-quarter estimates as they await further clarity on the issue. Additionally, United Natural Foods has reduced its net debt to under $1.93 billion, improving its financial leverage. The company has also been making strides in its strategic realignment efforts in the wholesale business segment. Despite these advancements, the systems disruption remains a concern, as it could impact the company’s operations and stock performance in the short term.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.