B&G Foods (BGS) Cuts Price Target to $4, Dividend Yield at 18.07%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Analyst Rating Changes: Barclays analyst Brandt Montour lowered B&G Foods' price target from $5 to $4 while maintaining an Equal-Weight rating, reflecting a cautious outlook on the company's future performance, which may impact investor confidence.
- Attractive Dividend Yield: B&G Foods boasts a dividend yield of 18.07%, appealing to investors seeking stable income during market turbulence, although the price target cut may lead to short-term stock price volatility.
- Quarterly Earnings Beat: Conagra Brands reported earnings of 45 cents per share, exceeding the analyst consensus estimate of 44 cents, demonstrating resilience in the consumer staples sector and potentially boosting market confidence in its stock.
- Executive Changes Impact: Altria Group announced the retirement of CEO Billy Gifford, with Sal Mancuso succeeding him; while analysts maintained their ratings, the leadership change could influence the company's strategic direction and market reactions.
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Analyst Views on BGS
Wall Street analysts forecast BGS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BGS is 4.10 USD with a low forecast of 3.00 USD and a high forecast of 5.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
0 Buy
4 Hold
1 Sell
Hold
Current: 4.280
Low
3.00
Averages
4.10
High
5.00
Current: 4.280
Low
3.00
Averages
4.10
High
5.00
About BGS
B&G Foods, Inc. manufactures, sells and distributes branded shelf-stable and frozen foods across the United States, Canada, and Puerto Rico. Its products include frozen and canned vegetables, vegetable, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, and other specialty products. It operates in four segments: Specialty, Meals, Frozen and Vegetables, and Spices and Flavor Solutions. Its products are marketed under various brands, including Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G, Grandma's, New York Style, B&M, Baker's Joy, Regina, TrueNorth, Static Guard, SugarTwin, Brer Rabbit, Ortega, Maple Grove Farms, Cream of Wheat, Las Palmas, Victoria, Mama Mary's, Spring Tree, McCann's, Carey's, Vermont Maid, Green Giant, Dash, Spice Islands, Weber, Ac'cent, Tone's, Trappey's, Durkee and Wright's.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
B&G Foods (BGS) Acquires Del Monte's Broth Business for $110 Million
- Acquisition Deal: B&G Foods announced a cash acquisition of Del Monte's broth and stock business for approximately $110 million, including the College Inn and Kitchen Basics brands, aligning with its long-term strategy to enhance brand portfolio and market competitiveness.
- Market Potential: The College Inn and Kitchen Basics brands are considered pantry staples for consumers seeking to prepare high-quality, innovative meals at home, projected to generate annual net sales of approximately $110 million to $120 million, further solidifying B&G's market position.
- Financial Impact: Upon closing, B&G Foods expects the acquisition to be immediately accretive to earnings per share, adjusted EBITDA, and free cash flow, with adjusted EBITDA anticipated to range between $18 million and $22 million, indicating a strong financial outlook.
- Funding Sources: B&G Foods plans to fund the acquisition and related expenses through cash on hand, proceeds from divestitures, and revolving loans under its existing credit facility, ensuring financial flexibility and sustainability.
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Del Monte Foods Reaches Asset Purchase Agreements, Ensuring Business Continuity
- Asset Purchase Agreements: Del Monte Foods has reached asset purchase agreements with three successful bidders covering its Vegetable, Fruit, Tomato, and Broth & Stock businesses, ensuring the continuity of its assets and operations under new ownership, demonstrating the enduring value of its brands.
- Court-Supervised Auction: The transactions are part of a court-supervised auction process and are expected to receive approval from the U.S. Bankruptcy Court for the District of New Jersey on January 28, 2026, with ownership transfer anticipated by the end of Q1 2026 if all conditions are met.
- Strategic Operational Support: CEO Greg Longstreet stated that these transactions create opportunities for the brands and businesses to thrive, with Del Monte Foods committed to supporting its team members, customers, and vendors while delivering high-quality food products.
- Ongoing Customer Service: Throughout the asset transition process, Del Monte Foods will continue to serve customers and fulfill orders, ensuring that its beloved brands remain healthy, delicious, and convenient.
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