In a report released today, Robert Moskow from TD Cowen maintained a Sell rating on B&G Foods (BGS – Research Report), with a price target of $6.50.
Robert Moskow has given his Sell rating due to a combination of factors impacting B&G Foods. The company reported slightly better-than-expected fourth-quarter sales, but management has warned of a slow start to the first quarter due to ongoing inflationary pressures affecting consumer behavior. Although there is an expectation of improvement in the second half of the year, predicting consumer acclimation remains challenging.
Additionally, while the Spice and Flavorings division performed well, other areas faced volume challenges, and pricing was negatively impacted by deflationary soybean oil costs. The company’s guidance for 2025 suggests modest growth, but interest expenses and potential tariff impacts pose risks. These factors, combined with the uncertainty in consumer demand and pricing pressures, contribute to the Sell rating.
Moskow covers the Consumer Defensive sector, focusing on stocks such as The Hershey Company, JM Smucker, and Campbell Soup. According to TipRanks, Moskow has an average return of 2.7% and a 47.90% success rate on recommended stocks.