United Natural Foods price target lowered to $12 from $13 at BMO Capital

BMO Capital lowered the firm’s price target on United Natural Foods to $12 from $13 and keeps a Market Perform rating on the shares after its Q2 results. The company’s expense reduction initiatives continue to provide support for its adjusted EBITDA, yet challenging top-line trends highlight the structural challenges for United Natural’s core customer base in an environment that may be exacerbated by a shift of promotional/vendor support dollars towards retail media, the analyst tells investors in a research note. While significant inflation has provided support for strong trends during 2021-2022, longer-term structural pressures have resumed, the firm added.