Pinnacle Foods pullback brings buying opportunity, says Deutsche Bank
Deutsche Bank analyst Rob Dickerson believes the 10% pullback in shares of Pinnacle Foods over the past month provides a buying opportunity. The stock's risk/reward is "more attractive once again," as the takeout premium has been reduced, all while Pinnacle's standalone growth continues to outperform peers, Dickerson tells investors in a research note ahead of the company's Q4 results on Thursday. Further, activist involvement could likely increase the probability of a strategic event, the analyst contends. He's looking for organic sales to grow 4.3% year-over-year in Q4 amid benefits from higher shipments in Frozen, along with continued momentum in the Grocery and Boulder segments. Dickerson has a Buy rating on Pinnacle Foods with a $68 price target.