The New Jersey-based branded food product company is "not yet at its pinnacle," analysts said.
"With Pinnacle shaking off any distractions from the failed Hillshire Brands Co. (HSH) bid, gaining share and exceeding productivity savings, we see the stock as attractive. A strong management team, solid execution vs. reasonable goals in a tough industry environment, potential for accretive M&A and reasonable free cash flow valuation (9% yield) lead us to our 'buy' opinion," analysts said.
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"Pinnacle's shares have done better than we expected in the last quarter. While competition is starting to get more aggressive as Pinnacle gains share, we recognize that momentum is a precious thing in the food industry," analysts added.
Shares of Pinnacle Foods closed up 0.06% at $33.65 on Friday.
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, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."