.August 16, 2024 Friday 06:38 PM

Truist Securities analysts maintained a Hold rating on Flowers Foods (NYSE:FLO) with a price target of $23 after the company’s Q2 results. The reported EPS of $0.36 beat estimates of $0.33, while revenue of $1.23 billion fell slightly short of the Street’s estimate of $1.24 billion. The analysts attributed the lower sales to unexpected exits from food service contracts but noted that the core DSD business trends remained consistent.

Following the key summer season, Flowers Foods is more confident in meeting its 2024 full-year outlook. The company’s performance reflects steady growth, stable margins, and consistent cash flow. However, analysts suggest that pursuing a significant M&A deal could help attract more investor attention to the consumer staple company.