CTAs keep buying Treasuries, gold longs face stop-loss risk: BofA
Investing.com - Jefferies raised its price target on United Natural Foods (NYSE:UNFI) to $27.00 from $26.00 on Friday, while maintaining a Hold rating on the stock. The new target comes as UNFI shows strong momentum, with the stock surging nearly 15% in the past week. According to InvestingPro data, the company’s current market capitalization stands at $1.63 billion.
The firm cited the company’s reiterated confidence in its three-year strategic plan, which was well-received by investors. Jefferies noted ongoing progress in debt reduction, with the company reportedly running one year ahead of schedule toward reaching approximately 2.5x leverage by the end of fiscal 2026. InvestingPro analysis reveals the company maintains healthy liquidity with a current ratio of 1.41, indicating sufficient assets to cover short-term obligations.
Jefferies highlighted United Natural Foods’ priorities for free cash flow generation and observed that the company has runway on both sales and margin initiatives to support high-single-digit percentage EBITDA growth.
Despite these positive developments, Jefferies indicated it would look for "greater visibility around the near-term recovery before baking in more optimism around these targets" and views the risk-reward profile as balanced.
The new $27 price target is based on a 5.5x multiple of the company’s calendar 2026 EBITDA estimates.
In other recent news, United Natural Foods has updated its fiscal 2025 outlook to account for the impact of a recent cyber incident, which is expected to reduce net sales by $350 million to $400 million and net income by $50 million to $60 million. Despite these challenges, the company has adjusted its full-year net sales outlook to a range of $31.6 billion to $31.8 billion, up from the previous range of $31.3 billion to $31.7 billion. The company anticipates a net loss of $90 million to $115 million, compared to an earlier forecast of a $55 million to $80 million loss. Adjusted earnings per share guidance has been lowered to $0.40 to $0.80, and adjusted EBITDA is now expected to be between $535 million and $565 million. UBS has raised its price target for United Natural Foods to $29, maintaining a Neutral rating, citing stable trends and progress toward financial targets. CFRA has upgraded its rating from Hold to Buy and increased its price target to $32, noting the limited financial impact of the cyber incident. The company’s operations have returned to normal levels, and it expects adequate insurance coverage for the incident, with no significant financial impact anticipated beyond fiscal 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.