United Natural Foods Inc. (NASDAQ:UNFI) has received a slashed price target by an analyst at Soleil Securities Group Inc. Originally set at $40.00, the price target has been dropped to $38.00 per share. However, not all is bad, as Soleil Securities maintains a “Buy” rating.
The Soleil Securities analyst stated, “United Natural announced a common stock secondary offering of up to 4.4275 million shares (including 15% over-allotment) at the close of market yesterday. This could increase total shares outstanding by 10%. Use of proceeds is to reduce outstanding balances on its revolving credit facility. We are lowering our F2011 EPS estimate from $1.83 to $1.71 and F2012 from $2.10 to $1.94.”
United Natural Foods, Inc. (United Natural) is a distributor of natural, organic, and specialty foods and non-food products in the United States. It carries more than 60000 natural, organic, and specialty foods and non-food products, consisting of national brand, regional brand, private label and master distribution products, in six product categories: grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements, bulk and food service products, and personal care items. The Company serves more than 17000 customer locations across the United States. The Company operates through three operating divisions: wholesale division, retail division and manufacturing division.
Company stock of United Natural Foods experienced a 4.08% loss for Tuesday trading, and closed the day down at $33.86 per share.