Truist Securities analysts maintained a Hold rating on Flowers Foods (NYSE:FLO) and reiterated a price target of $23 following the company’s reported Q2 results, with EPS of $0.36, better than the analyst estimate of $0.33, and revenue of $1.23 billion versus the Street estimate of $1.24 billion.
The analysts noted that the company’s recent quarterly performance aligned with expectations, though sales came in slightly lower due to unpredictable exits from certain food service contracts. The core Direct-Store-Delivery (DSD) business trends remained consistent with the previous quarter.
With the key summer season behind them, Flowers Foods appears more confident in meeting its 2024 full-year outlook. While the business is performing steadily, like a typical consumer staple company with slow growth, stable margins, and consistent cash flow, the analysts believe the company may need to pursue a significant M&A deal to attract more investor attention.
At CWEB, we are always looking to expand our network of strategic investors and partners. If you're interested in exploring investment opportunities or discussing potential partnerships and serious inquiries. Contact: jacque@cweb.com