In a report published Friday, Bank of America analyst Bryan D. Spillane reiterated an Underperform rating on TreeHouse Foods (NYSE: THS), and raised the price target from $69.00 to $73.00.
In the report, Bank of America noted, “After the close on 7/15/14, THS announced preliminary 2Q sales of approximately $625mn and earnings ‘very close' to consensus estimates. Consensus is currently at $0.83, in line with our updated estimate. The company also provided a little more detail around 2Q revenues: 1) Growth of more than 18% y/y, driven by ~14% contribution from acquisitions; 2) Organic sales (vol/mix driven) growth of ~5% and FX headwind of 1%; 3) NA Retail is expected to have vol/mix growth of ~6%, driven by beverages (single serve), as well as pickles and salad dressings, which recorded year over year growth. We maintain our $0.83 estimate, but adjust our model to reflect stronger revenue growth, offset by lower than expected margins and higher than expected share count.”
TreeHouse Foods closed on Thursday at $75.22.
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