In a report released yesterday, Edward Kelly from Wells Fargo maintained a Sell rating on United Natural Foods (UNFI – Research Report), with a price target of $25.00.
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Edward Kelly has given his Sell rating due to a combination of factors impacting United Natural Foods. Despite the company’s recent positive sales and margin performance, a recent cyberattack has introduced significant uncertainty. The attack has disrupted IT systems, leading to operational challenges that could negatively affect short-term earnings, capital expenditures, and customer retention.
Moreover, while UNFI’s sales momentum has been strong, with notable growth in the natural segment, the uncertainty surrounding the cyberattack’s resolution adds risk to the company’s recovery trajectory. This disruption could potentially benefit competitors, as in-stock levels at key customers like Whole Foods have already been affected. Given these uncertainties, Kelly finds it difficult to recommend buying the stock during its current pullback.
UNFI’s price has also changed moderately for the past six months – from $29.620 to $23.300, which is a -21.34% drop .