B&G Foods (BGS – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Robert Moskow from TD Cowen maintained a Sell rating on the stock and has a $4.00 price target.
Robert Moskow has given his Sell rating due to a combination of factors impacting B&G Foods’ performance. The company reported disappointing first-quarter sales and profit figures, primarily due to weaker consumer demand and reductions in retail inventory. Although there was some improvement in sales trends throughout the quarter, the overall outlook for fiscal year 2025 was revised downward, with expectations for a slower recovery.
Management’s efforts to deleverage through divestments have not alleviated concerns, as the market remains skeptical about the effectiveness of these measures. The company’s high debt leverage, currently around 6.8x, is seen as problematic, especially in a volatile economic environment. Furthermore, the new sales and EBITDA guidance reflects a weaker consumer outlook, which may not fully account for the ongoing decline in consumer sentiment. These factors collectively contribute to the Sell rating on B&G Foods’ stock.