Analyst Kelly Bania of BMO Capital maintained a Buy rating on United Natural Foods, retaining the price target of $48.00.
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Kelly Bania has given her Buy rating due to a combination of factors that highlight United Natural Foods’ strong performance and growth potential. The company has been effectively executing its network optimization strategy, which has resulted in better-than-expected outcomes. This success increases confidence in United Natural Foods’ ability to meet or exceed its EBITDA growth targets.
Additionally, the implementation of new AI-based supply chain technology is expected to enhance demand prediction and reduce waste, further supporting profitability. Despite some challenges in conventional sales, the company’s strategic initiatives and conservative financial assumptions provide a solid foundation for future growth. The target price of $48 reflects an attractive valuation, suggesting potential for further appreciation as the company continues to optimize its operations.
According to TipRanks, Bania is a 4-star analyst with an average return of 6.9% and a 64.21% success rate. Bania covers the Consumer Defensive sector, focusing on stocks such as United Natural Foods, Sprouts Farmers, and Kroger Company.