TD Cowen analyst Robert Moskow maintained a Sell rating on B&G Foods today and set a price target of $3.00.
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Robert Moskow has given his Sell rating due to a combination of factors impacting B&G Foods’ financial performance and outlook. Despite a better-than-expected decline in third-quarter sales, the company’s overall sales continue to decrease, with a modest decline in base business volumes and only slight gains in price/mix. The growth observed in the foodservice and private label segments was not sufficient to counterbalance the ongoing declines in the center-store brands.
Furthermore, while management anticipates a transformational year in 2026, the current financial leverage remains high, with a 6.88x leverage ratio at the end of the third quarter. Although there have been efforts to reduce net debt through divestitures, the company’s operating cash flow appears weak due to inventory purchases related to sold businesses. These factors contribute to the cautious outlook and justify the Sell rating.