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Fly News Breaks for August 10, 2016
FLO
Aug 10, 2016 | 15:25 EDT
Pivotal Research analyst Timothy Ramey thinks a Department of Labor case against Flowers Foods would "dwarf" the other two cases of misclassification he is aware of that the DOL has brought since July 2015, as he believes Flowers has misclassified its 5,100 route delivery drivers as independent contractors. The analyst, who keeps a Sell rating on the stock, wonders if Flowers can remain a going concern and thinks "at a minimum" that its share repurchases will stop and a suspension of its dividend "would be prudent." Ramey cut his price target on the stock in half, to $4 per share.
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