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What Are Analysts Recommending for B&G Foods?

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Target prices

B&G Foods (BGS) released its fiscal 4Q15 and fiscal 2015 earnings on February 25, 2016. After the earnings results, Wall Street analysts provided their target prices for the next 12 months. The results show that 33% of analysts rate BGS a “buy,” ~67% rate it a “hold,” and none rate it a “sell.”

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Consensus rating for B&G Foods

The average broker target price for BGS is $39.62. This represents a 9.3% potential rise compared to Friday’s closing price of $36.23. The company’s peers General Mills (GIS), Kellogg (K), and J&J Snack Foods (JJSF) have average broker target prices of $58.87, $76, and $108, respectively. These figures imply returns of -0.22%, 3.4%, and -2.3%, respectively, in the next 12 months.

The First Trust Consumer Staples AlphaDEX Fund (FXG) and the PowerShares S&P 500 High Dividend ETF (SPHD) invest 2.9% and 1.7% of their portfolios, respectively, in Kellogg.

Recommendations for B&G Foods

Stephens and RBC Capital Markets have given BGS the highest target prices of $45 and $43, respectively, which represent a potential to rise by 24% and 18%, respectively, compared to Friday’s closing price. Stephens rates the stock a “strong buy.”

William Blair & Co. rated the stock a “strong buy.” It didn’t provide any target price for the stock. Barclays rated BGS a “hold” and has assigned it the lowest target price of $37. This is 2% higher than Friday’s closing price. BGS has received a “hold” rating from BMO Capital Markets, Credit Suisse, D.A. Davidson & Co., Buckingham Research Group, and Piper Jaffray.

In the next part of this series, we’ll look at the rise in BGS’s gross margin for fiscal 4Q15 and fiscal 2015.

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