The firm said it raised its rating on the company, which manufactures, markets, and distributes branded foods in North America, based on the expected termination of the Hillshire Brands (HSH) merger deal.
Hillshire will pay $163 million to Pinnacle Foods in order to terminate the agreement, which will give the company further options to create shareholder value through another acquisition, Credit Suisse said.
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Separately, TheStreet Ratings team rates PINNACLE FOODS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PINNACLE FOODS INC (PF) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, generally higher debt management risk and poor profit margins."