Lancaster Colony initiated with Buy on ‘attractive’ growth at Loop Capital

Loop Capital analyst Alton Stump last night initiated coverage of Lancaster Colony with a Buy rating and $237 price target. Given the company’s “attractive” growth profile, especially within its licensed retail product business, its history as one of only 13 U.S. companies with 60 straight years of regular cash dividend increases and the likelihood Lancaster’s acquisition strategy “will pick up steam soon,” the shares deserve to trade at a premium to its peers, the analyst tells investors in a research note. The firm says the company’s retail licensing business represents one of the most attractive growth opportunities within the domestic packaged foods industry.