TreeHouse Foods (THS) Stock Rating Downgraded at BMO Capital

TreeHouse Foods (THS) was downgraded to 'market perform' from 'outperform' at BMO.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- TreeHouse Foods (THS) - Get Report stock was downgraded to "market perform" from "outperform" at BMO Capital on Friday morning. The firm set at $90 price target on the packaged food and beverage manufacturing company's stock.

The downgrade comes as BMO sees the company's acquisition of ConAgra's (CAG) private label business as undermining TreeHouse's move towards healthier foods, The Fly reports. The firm took note that the company's valuation is already reflecting earnings accretion from the deal.

Additionally, before the market opened on Thursday, TreeHouse Foods reported its 2015 third quarter financial results.

Adjusted earnings came in at 86 cents per share on $798.64 million in revenue. Analysts surveyed by Thomson Reuters had been looking for earnings of 83 cents per share on revenue of $819.3 million for the most recent quarter.

Shares of TreeHouse Foods are down by 1.68% to $85.35 in mid-morning trading on Friday.

Separately, TheStreet Ratings team rates TREEHOUSE FOODS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate TREEHOUSE FOODS INC (THS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and compelling growth in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

You can view the full analysis from the report here: THS

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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