Flowers Foods, Inc. reported weaker-than-expected second-quarter sales, prompting analysts to scale back forecasts and warn of ongoing category headwinds. Truist Securities analyst Bill Chappell lowered his price forecast to $15 from $20, citing Flowers’ inconsistent execution and intense private label competition. The stock is likely to remain range-bound until the private label segment shows clearer direction.

DA Davidson analyst Brian Holland also struck a cautious tone, noting mounting consumer and competitive pressures for Flowers Foods. The Simple Mills acquisition added leverage without delivering near-term benefits, exposing the company to execution risks. Holland now projects fiscal year 2025 EBITDA and sales below prior forecasts, highlighting risks from pricing to M&A execution.

In its quarterly update, Flowers reported an adjusted EPS of 30 cents on $1.242 billion in sales, falling shy of Wall Street estimates. Net income and adjusted EBITDA both declined. CEO Ryals McMullian acknowledged shifting consumer demand and macroeconomic uncertainty, deploying cost-saving measures to offset weakness. The company cut its full-year EPS outlook and sales guidance below Street expectations.

Flowers Foods shares are trading higher by 0.54% to $15.78 at Monday’s last check. Stephens & Co. initiated coverage on the stock with an Equal-Weight rating in January 2021. SunTrust Robinson Humphrey and Deutsche Bank both maintained Hold ratings in May 2020. View more analyst ratings for FLO on Benzinga.

Read more at Yahoo Finance: Flowers Foods Under Pressure As Analysts Point To Execution Issues, Private Label Pressure