Goldman Sachs analyst Leah Jordan maintains $United Natural Foods (UNFI.US)$ with a hold rating, and adjusts the target price from $15 to $22.
According to TipRanks data, the analyst has a success rate of 68.2% and a total average return of 23.4% over the past year.
Furthermore, according to the comprehensive report, the opinions of $United Natural Foods (UNFI.US)$'s main analysts recently are as follows:
United Natural Foods reported a Q4 earnings beat and provided FY25 guidance that aligned with expectations, despite a bearish sentiment prior to the announcement. The company's shift to positive wholesale volumes at the end of the quarter, along with a new three-year outlook that projects margin growth despite flat sales, suggests that the cyclical pressures faced in the past may now be subsiding. Additionally, there is potential for further upside from a rise in vendor promotions or advantageous procurement circumstances.
United Natural Foods is demonstrating progress in its turnaround efforts despite challenging macroeconomic conditions. Although growth in food at home has remained moderate, the company has experienced encouraging signs, such as a return to positive volume growth towards the end of Q4. The long-term guidance appears to be attainable, which may contribute to stabilizing its valuation multiple.
United Natural Foods' Q4 EBITDA surpassed expectations, aligning FY24 EBITDA with the upper range of projections. The company's outlook for FY25 suggests a stable to modest growth trajectory, potentially reassuring investors. Furthermore, while management has outlined a long-term objective for high-single-digit annual EBITDA growth, the anticipation of steady sales in the near future may curtail the potential for valuation increase.
Note:
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