B&G Foods, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Robert Moskow from TD Cowen maintained a Sell rating on the stock and has a $3.00 price target.
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Robert Moskow has given his Sell rating due to a combination of factors impacting B&G Foods. The company reported a decline in core sales by 4.2% and a decrease in EBITDA by 9%, which highlights ongoing structural issues within their portfolio. Additionally, there are concerns about rising refinancing costs and the company’s guidance for the second half of the year seems overly optimistic.
Despite efforts to reduce debt through divestitures, such as the sale of Don Pepino and Sclafani brands, the company’s leverage remains high. The management’s expectation for base business growth and EBITDA improvement in the latter half of the year appears unrealistic, especially given the current tracking data showing a 5% decline in sales. These factors collectively contribute to the Sell rating assigned by Moskow.
According to TipRanks, Moskow is a 3-star analyst with an average return of 1.7% and a 44.47% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Campbell Soup, Kraft Heinz, and Celsius Holdings.