Lancaster Colony initiated with a Hold at Jefferies

Jefferies initiated coverage of Lancaster Colony with a Hold rating and $166 price target. The analyst says the company is a “differentiated” U.S. food play given its “unique” retail sauces and dressings licensing program, and self-funding model that has posted above average organic growth with no debt. That said, Lancaster is facing near-term pressures from still elevated supply chain costs, high private label exposure, brand reinvestment needs, and restaurant traffic deceleration that could slow its margin recovery progression, the analyst tells investors in a research note.