National Beverage, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Peter Grom from UBS maintained a Sell rating on the stock and has a $40.00 price target.
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Peter Grom has given his Sell rating due to a combination of factors impacting National Beverage’s stock. Despite some improvement in top-line trends, the company’s shares have underperformed recently, indicating challenges in the market. The visibility into the company’s fundamental performance remains limited, especially with uncertain consumer demand and potential negative impacts from input costs and tariffs.
Furthermore, while there has been some positive movement in the Sparkling Water category, the overall sales expectations are tempered by weaker performance in the Soft Drinks segment. The company’s valuation remains high compared to its peers, and with ongoing uncertainties around margin recovery and external economic factors, the risk/reward profile appears skewed to the downside.
Grom covers the Consumer Defensive sector, focusing on stocks such as JM Smucker, Keurig Dr Pepper, and Molson Coors. According to TipRanks, Grom has an average return of -3.3% and a 51.06% success rate on recommended stocks.