United Natural Foods price target lowered to $28 from $40 at BMO Capital

BMO Capital analyst Kelly Bania lowered the firm’s price target on United Natural Foods to $28 from $40 and keeps a Market Perform rating on the shares. The company reported a "challenging" set of results, and despite the pullback in the stock price, Q2 further highlights a more challenging lack of internal capabilities and systems for its management to appropriately evaluate underlying drivers of profitability, the analyst tells investors in a research note. The firm adds that it remains cautious on United Natural Foods amid weakening volume trends and more risk to its thesis that cross-selling wins have been aided by supply chain disruptions.