Cautious Outlook on SpartanNash Co: Hold Rating Amid Retail Challenges and Strategic Initiatives

Kelly Bania, an analyst from BMO Capital, maintained the Hold rating on SpartanNash Co (SPTN – Research Report). The associated price target is $20.00.

Kelly Bania has given her Hold rating due to a combination of factors influencing SpartanNash Co’s performance. The company’s first-quarter adjusted EBITDA aligned with expectations, showing improved wholesale profitability but weaker retail performance. Despite solid comparable sales, retail EBITDA fell short of estimates due to cost pressures, including significant impacts from Pharmacy Benefit Manager expenses.
Management’s reaffirmation of 2025 guidance, supported by slightly higher inflation forecasts, reflects confidence in their strategic initiatives. However, Bania remains cautious about top-line challenges and volume pressures at key independent customers, which are expected to persist. While SpartanNash aims to drive growth through expanding its Hispanic and convenience store footprint, these efforts are still in early stages and may add complexity. Consequently, Bania maintains a Market Perform rating with a $20 target price, reflecting a cautious outlook on the company’s longer-term prospects.