Hostess Manufacturers Inc.
TWNK,
+0.05%
was initiated at outperform with a $22 goal value at Credit score Suisse based mostly on the patron need for indulgent snacks that bucks the well being and wellness pattern. “We imagine traders who pigeonhole Hostess as structurally deprived owing to well being and wellness developments usually are not wanting intently sufficient,” wrote analysts led by Robert Moskow. Analysts say information exhibits that buyers are snacking extra and so they’re continuously in search of candy snacks. “Our conclusion is that occasion shoppers main wholesome lives will continuously eat Hostess merchandise as a result of they view it as a reward,” Credit score Suisse stated. Analysts additionally suppose Hostess is present process a change that can lead to a extra “consumer-centric” firm, with analysis investments that make advertising simpler and product launches, like Child Bundts, profitable. Hostess inventory has rallied almost 25% for the 12 months thus far whereas the S&P 500 index
SPX,
+0.55%
has gained 19% for the interval.

Source link