United Natural Foods price target lowered to $13 from $20 at BMO Capital

BMO Capital lowered the firm’s price target on United Natural Foods to $13 from $20 and keeps a Market Perform rating on the shares. The analyst is citing the company’s lower than expected FY24 estimates, noting that while some of the major rebase risk may now be baked into the stock, BMO continues to see longer-term structural headwinds for United Natural, particularly as the grocery environment becomes more competitive. The company’s investments in automation are also likely to take many years and weigh on free cash flows, the firm tells investors in a research note.