Argus looking for better entry point at United Natural Foods

Argus keeps a Hold rating on United Natural Foods but says the firm would consider raising the stock to Buy if inflation pressure abates and sales and margins improve. During the pandemic, United Natural Foods benefited from increased sales as well as from renegotiated supplier agreements and the expansion of its distribution network, but food cost inflation is now hurting sales and margins as customers cut back on purchases, the analyst tells investors in a research note.